InfoSonics Corporation Announces $14.4 Million Equity Private Placement
SAN DIEGO, CA, – January 30, 2006 – InfoSonics Corporation (AMEX: IFO), one of the largest distributors of wireless handsets in the United States and Latin America, today announced that it has entered into definitive purchase agreements with several institutional investors with respect to the private placement of 1,100,000 shares of its common stock for $14.4 million in a private placement to institutional investors at a purchase price of $13.10 per share. The net proceeds to the Company will be approximately $13.5 million. The purchasers also received warrants to purchase an additional 330,000 shares of common stock from the Company at a purchase price of $18.38 per share. Closing of the transaction is subject to approval of the listing of the shares by the American Stock Exchange. SG Cowen & Co., LLC acted as the lead placement agent for this transaction.
The net proceeds to the Company will be used for potential business opportunities, such as vendor, customer and geographic expansion, particularly in Central and South America. In addition, the net proceeds are anticipated to be used for any increases in working capital requirements and inventory, and also for debt reduction, which would result in reduced interest expense.
The securities sold in this private placement have not yet been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States in the absence of an effective registration statement or exemption from registration requirements. However, as part of the transaction, the Company agreed to file a registration statement on Form S-3 with the Securities and Exchange Commission within thirty days for purposes of registering the resale of all of the common stock issued in the private placement. This news 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. Any offering of InfoSonics Corporation securities under the resale registration statement will be made only by means of a prospectus.
About InfoSonics Corporation
InfoSonics is one of the largest distributors of wireless handsets and accessories in the United States and Latin America. For the wireless telecommunications industry, InfoSonics provides flexible and cost effective solutions, including purchasing, marketing, selling, warehousing, order assembly, programming, packing, shipping, and delivery. InfoSonics supports manufacturers in moving their products to agents, resellers, distributors, independent dealers, retailers and wireless network operators in the U.S. and Latin America. For additional information, please visit www.infosonics.com.
