Inventergy (INVT) Prices Offering of Common Stock and Warrants for Proceeds of $6M

October 6, 2016 9:17 AM EDT

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Inventergy Global, Inc., a Silicon Valley intellectual property company (NASDAQ: INVT), today announced that the Company has priced a registered public offering of shares of common stock and warrants with gross proceeds of approximately $6.0 million. Investors will receive 6,000,000 shares of its common stock at a price to the public of $1.00 per share and warrants to purchase up to 6,000,000 shares of common stock, exercisable for a period of five years, with an exercise price of $1.00 per share. The warrants are exercisable immediately. The closing of the offering is expected to take place on or about October 11, 2016, subject to satisfaction of customary closing conditions.

Chardan Capital Markets, LLC acted as the lead placement agent and Dawson James Securities, Inc. acted as co-placement agent in connection with the offering.

The Company plans to use the net proceeds of the offering to redeem a portion of its outstanding Series C and Series E preferred stock and to fund its operations, including its recently-launched Inventergy Innovations subsidiary. Company management believes that the net proceeds of this offering, approximately $5,300,000 will result in the Company's stockholders' equity exceeding the Nasdaq requirement of $2.5 million. This offering was part of the Company's plan of compliance agreed to with Nasdaq. Nasdaq has yet to finally determine whether the Company has met its first milestone in meeting such compliance requirements. The Company expects to learn the results of Nasdaq's determination soon. To facilitate the Company's compliance with Nasdaq's requirements, the holders of the Company's Series C and E Convertible Preferred Stock consented to having the first $3.8 million of net proceeds go to working capital of the company before redemption of such preferred stock in consideration for a reduction in the exercise price of the July 2016 warrants to $1.43 and the May 2016 warrants to $1.86 and a 15% increase in the redemption premium of the Series E Convertible Preferred Stock if not redeemed on or before January 25, 2017.

A registration statement for these securities was previously filed on Form S-1 (File No. 333-211211), which was declared effective on September 16, 2016 by the Securities and Exchange Commission (the "SEC"). The offering has been made only by means of a prospectus. Copies of the final prospectus related to the offering may be obtained, when available, at the SEC's website at

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