Finjan Holdings (FNJN) Enters $10.2M Series A Preferred Private Placement

May 12, 2016 8:35 AM EDT
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Finjan Holdings, Inc. (Nasdaq: FNJN) announced that it has secured a $10.2 million Series A Preferred Stock financing in a private placement transaction led by Halcyon Long Duration Recoveries Investments I LLC ("Halcyon LDRII"), an affiliate of both funds managed by Halcyon Long Duration Recoveries Management LP and its affiliates ("Halcyon") and Soryn IP Group, LLC ("Soryn").

Finjan will issue 102,000 shares of Series A Preferred Stock at a price of $100 per share to Halcyon LDRII in this transaction, a non-dilutive financing for common shareholders of Finjan. No warrants were issued in connection with the transaction. The Series A Preferred Stock contains certain optional and mandatory redemptive provisions, does not accrue an annual cash dividend, and carries participation rights in certain of the Company's revenue streams until securities are retired. A more complete summary of the financing is included in a Form 8-K which was filed by Finjan with the Securities and Exchange Commission on 05/12/16.

"Finjan has a rich 20-year history in developing cybersecurity technology which is captured in our valuable and durable portfolio of patents," said Phil Hartstein, President and CEO of Finjan Holdings. "As a result of this non-convertible Series A financing, the investment flows directly onto our balance sheet and ensures we continue to operate our business and pursue licensing and enforcement efforts at a vigorous pace. This equity partnership with Halcyon and Soryn represents the Company's first capital raise since going public and reflects more than just financing as it renews confidence in the foundation of Finjan's historical licensing and enforcement results and supports ongoing operations."

"We are very pleased to announce this financing of Finjan, an historical innovator in the cybersecurity space," highlighted Michael Gulliford, the Founder & Managing Principal of Soryn. "Finjan continues to transform by introducing new products, investing in start-ups and establishing industry wide best practices for patent licensing. We have been, and continue to be, extremely impressed with Finjan's management, technology and intellectual property."

B. Riley & Company, LLC acted as placement agent for the transaction. Morgan, Lewis & Bockius, LLP acted as legal counsel to B. Riley.

The Series A Preferred shares have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offering sold would be unlawful.

Analyst and Investor Call with Management A conference call to discuss the recent financing along with first quarter 2016 results is scheduled for 1:30 p.m. Pacific Daylight Time on May 16, 2016. Analysts, investors, and other interested parties may access the conference call by dialing 1-855-327-6837. International callers can access the call by dialing 1-631-891-4304. An archived audio replay of the conference call will be available for 2 weeks beginning at 4:30 pm Pacific Time on May 16, 2016 and can be accessed by dialing 1-877-870-5176 and providing access code 10001218. International callers can access the replay by dialing 1-858-384-5517. The call will also be archived on Finjan's investor relations website.



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