Sonic Foundry® Secures $8.5 Million in Debt Financing
21 Novembro 2022 - 3:00PM
Business Wire
Additional $1.2 million raised in equity
agreement
Sonic Foundry, Inc. (“Sonic Foundry” or the “Company”) (NASDAQ:
SOFO), the trusted leader in video capture, management and
streaming solutions, today announced that it has secured $9.7
million in financing with three separate transactions. It entered
into a Loan and Security Agreement with Neltjeberg Bay Enterprises,
LLC (“NBE”) for a $5.5 million loan at an annual rate of 12%
interest. In addition, the Company closed a Security Agreement and
Promissory Note with Mark Burish, Chairman of the Sonic Foundry
Board, for $3 million at the same interest rate as the NBE note.
Mark Burish also purchased 1.2 million shares of common stock at a
price of $1.02 per share.
“The total sum of $9.7 million gives us meaningful liquidity to
continue the build out of our Vidable™ and Global Learning
Exchange™ (GLX) initiatives. We are very optimistic that both new
business lines will be significant contributors to revenues and
long-term value creation for our shareholders,” said Sonic Foundry
CEO Joe Mozden, Jr. “In the current interest rate environment, it
is especially gratifying that we could raise capital at favorable
rates relative to other companies in the broad middle market.
Access to growth capital has become increasingly more difficult,
especially at fixed rates versus variable rates, which have become
more prevalent. With these financing arrangements, we are confident
that our growth strategy will allow us to readily cover the debt
payments, while giving us the time and runway to achieve our
objectives. While we have no control over the macro environment, we
are committed to responsible management of our capital and business
to the benefit of all our stakeholders.”
Mark Burish, Chairman of the Sonic Foundry Board, added, “These
financing transactions, including my personal participation,
demonstrate the tremendous confidence that our board has in Sonic
Foundry’s future. It’s also important to note that the debt
agreement was headed by Fred Kopko, who is managing director of NBE
and a former board member of Sonic Foundry. Fred resigned from our
board to focus his attention on investing in high-growth companies
like the transaction we announced today. It has been an honor to
work with Fred and on behalf of our board and management, I thank
him for his leadership and commitment to our vision.”
About Sonic Foundry
Founded in 1991 and headquartered in Madison, Wis., Sonic
Foundry (NASDAQ: SOFO) is dedicated to transforming how the world
works and learns through innovative and scalable technology
solutions. We help customers maximize the value of their video
initiatives and infrastructure while leveraging our expertise and
global footprint to help unlock a smarter, more connected world for
learners, workers, and entrepreneurs everywhere. Sonic Foundry’s
family of brands includes Mediasite®, Video Solutions, Vidable™ and
Global Learning Exchange™ which are trusted by thousands of
educational institutions, corporations, and health care
organizations in dozens of countries around the world. For more
information on how Sonic Foundry’s solutions can empower you and
your organization to seize today’s opportunities as well as those
of the future, visit www.sonicfoundry.com.
Forward Looking Statements
This news release contains forward-looking statements about the
products and services of Sonic Foundry within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements include
statements about our products and services, our customer base,
strategic investments, new partnerships, our future operating
results, and any statements we make about the company’s future.
These types of statements address matters that are subject to many
risks and uncertainties. Actual results could differ materially
from the forward-looking guidance we provide. Any forward-looking
statements should be considered in context of the risk factors
disclosed in our periodic forms 10Q, 10K and other filings with the
SEC. These filings can be accessed on-line at www.sec.gov and other
websites or can be obtained from the company’s investor relations
department. All of the information and disclosures we make in this
news release regarding our business, including any forward-looking
guidance, are as of the date given and we assume no obligation to
update or change this information, regardless of subsequent
events.
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version on businesswire.com: https://www.businesswire.com/news/home/20221121005648/en/
Sonic Foundry Eamon Doyle 608.310.5891
eamon.doyle@sonicfoundry.com
Sonic Foundry (NASDAQ:SOFO)
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