MELVILLE, NY--(Marketwired - April 24, 2013) - CopyTele, Inc. ("CTI") (OTCBB: COPY), a company specializing in patent monetization, today announced that it has entered into a common stock purchase agreement with the Aspire Capital Fund, LLC, whereby Aspire Capital has committed over the next two years to purchase up to $10 million of CTI's common stock based upon prevailing market prices over a period preceding each sale. In addition, Aspire Capital has made an initial purchase of $500,000 of CTI common stock at a price of $0.20 per share.
Robert Berman, CTI's President and CEO, stated, "We look forward to working with Aspire Capital as a financial partner and long-term investor in CopyTele. This arrangement helps give us the ability to access capital as we need it, and at share prices that will reflect our progress as we continue to implement our strategy of patent monetization."
"Based upon management's track record of successfully monetizing patents, and the progress that CopyTele has made, both in asserting its own patents, and in acquiring additional patent portfolios, we believe that CopyTele has a bright future and are excited to be involved as a long term investor", commented Steven G. Martin, Managing Member of Aspire Capital.
Key aspects of the purchase agreement include:
- CTI initiates and controls the timing and amount of any sales of common stock to Aspire Capital; Aspire Capital has no right to require any sales by the Company.
- The sale prices will be based on the prevailing market price at the time of each sale and CTI will know the sales price before directing Aspire Capital to purchase common stock.
- CTI is not required to sell the entire $10 million of common stock to Aspire Capital.
- There are no limitations on the use of proceeds, financial or business covenants, restrictions on future financings, rights of first refusal, participation rights, penalties or liquidated damages in the purchase agreement.
- CTI may terminate the purchase agreement at any time, at its discretion, without any additional cost or penalty.
- CTI will issue shares of its common stock to Aspire Capital as a commitment fee in connection with entering into the purchase agreement.
- There are no warrants issued in connection with the purchase agreement.
A more complete and detailed description of the purchase agreement and other related agreements is set forth in the Company's Registration Statement on form S-1, filed today with the Securities and Exchange Commission.
About CopyTele, Inc.
CopyTele develops and acquires patented technologies for the purposes of patent monetization and patent assertion. The company currently has 6 patent portfolios in the areas of Key Based Encryption, E-Paper® Electrophoretic Display, Nano Field Emission Display ("NFED"), Micro Electro Mechanical Systems Display ("MEMS"), Loyalty Point Conversion Systems, and Window Frame Construction. Additional information is available at www.CTIpatents.com .
About Aspire Capital Fund LLC
Aspire Capital Fund, LLC is an institutional investor based in Chicago, Illinois with a fundamental investment approach. Aspire Capital invests in a wide range of companies and industries emphasizing life sciences, energy and technology companies.
Statements that are not historical fact may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, but rather reflect CopyTele's current expectations concerning future events and results. We generally use the words "believes," "expects," "intends," "plans," "anticipates," "likely," "will" and similar expressions to identify forward-looking statements. Such forward-looking statements, including those concerning our expectations, involve risks, uncertainties and other factors, some of which are beyond our control, which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and factors include, but are not limited to, those factors set forth in "Item 1A - "Risk Factors and other sections of our Annual Report on Form 10-K for the fiscal year ended October 31, 2012 as well as in our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in this press release.