SOURCE: Zoom Telephonics, Inc.

Zoom Telephonics, Inc.

June 24, 2015 09:54 ET

Zoom Telephonics Announces June 24, 2015 Record Date and $0.90 Exercise Price for Rights Offering

BOSTON, MA--(Marketwired - June 24, 2015) - Zoom Telephonics, Inc. (OTCQB: ZMTP) ("Zoom"), a leading provider of cable modems and other communications products, announced that it has set a record date of June 24, 2015 and an exercise price of $0.90 per share for its previously announced rights offering (the "Rights Offering"). The amended registration statement may be found by clicking on the following link:

http://www.sec.gov/Archives/edgar/data/1467761/000135448815003108/zmtp_s1.htm

Zoom's Board of Directors set the record date for the rights offering as of the close of business June 24, 2015. The Rights Offering will conclude on Wednesday, July 29, 2015 unless Zoom extends the date.

Shareholders must own Zoom's stock as of 4:00 PM Eastern Time on Wednesday, June 24, 2015 to be eligible to participate in the rights offering. The rights offering will be made through a dividend in the form of a non-transferable subscription right to purchase one share of common stock for each share of common stock owned on the record date at an exercise price of $0.90. Holders who fully exercise their subscription rights will be entitled to subscribe for additional shares of common stock to the extent that any subscription rights remain unsubscribed. The subscription rights are non-transferable and may not be sold. The subscription rights may only be exercised during the subscription period ending Wednesday, July 29, 2015 unless Zoom extends the subscription period. Please see the expected calendar below.

   
Wednesday, June 24, 2015 Record Date
Wednesday, July 29, 2015 Subscription Period Ends Unless Zoom Extends It
  

The rights offering will be made only by means of a prospectus. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.

"This rights offering is intended to provide Zoom with working capital to fund projected higher shipments, inventory, and receivables associated with our recently announced Motorola cable modem brand license, and also to fund other new product initiatives," said Frank Manning, Zoom's President and CEO. "We believe that effectively executing our plans in connection with the Motorola license agreement will enable Zoom to significantly increase annual revenue and net income beginning in 2016. Zoom's ability to increase revenue will depend on a number of factors including the strength of the overall cable modem market, our ability to develop and produce in high volume Motorola brand cable modem products, and our ability to grow our shelf space at key retailers. We believe the Motorola brand license is a transformative opportunity for our company, and we hope our shareholders will view the rights offering as a good opportunity to increase their investment in Zoom."

About Zoom Telephonics

Founded in 1977 in Boston, Zoom Telephonics, Inc. designs, produces, markets and supports communication products. For more information about Zoom and its products, please see www.zoomtel.com. For more information about the Motorola license agreement, please see www.zoomtel.com/documentation/news/Motorola-License-Agreement-May2015.pdf .

This release contains forward-looking information relating to Zoom Telephonics' plans, expectations, and intentions. Actual results may be materially different from expectations as a result of known and unknown risks, including: the potential need for additional funding which Zoom may be unable to obtain; the uncertainty of future revenues from sales of cable modems; unanticipated costs, interruptions or other uncertainties associated with Zoom's production and shipping; Zoom's reliance on several key outsourcing partners; uncertainty of key customers' plans and orders; risks relating to product certifications; Zoom's dependence on key employees; uncertainty of new product development including budget overruns, project delays, and the risk that newly introduced products may contain undetected errors or defects or otherwise not perform as anticipated; costs and senior management distractions due to patent-related matters; and other risks set forth in Zoom's filings with the Securities and Exchange Commission. Zoom cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Zoom expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Zoom's expectations or any change in events, conditions or circumstance on which any such statement is based.

MOTOROLA and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC. and are used under license. All other trademarks are the property of their respective owners.

Contact Information

  • Contact Information
    Company
    Frank Manning
    Zoom Telephonics, Inc.
    Phone: 617.753.0003

    Investor Relations
    John Nesbett/Jennifer Belodeau
    Institutional Marketing Services (IMS)
    Phone: 203.972.9200
    jnesbett@institutionalms.com