Tuesday, May 27, 2008

Wave Systems seeks $1.7M from stock sale

By Mass High Tech

Security software developer Wave Systems Corp. reports that it plans to raise about $1.7 million by selling to investors 2.1 million shares of its Class A common stock.

It would be the Lee-based company’s third private placement in the last 12 months.

Wave Systems (Nasdaq: WAVX) plans to sell its stock at 80 cents per share. Investors will also receive three-year warrants to purchase an aggregate of 537,812 shares of Wave’s Class A stock for 85 cents per share, raising $1.6 million to fund the company’s ongoing operations, Wave officials said.

Wave Systems, which was originally founded as Indata Corp. in 1988, develops client and server-based data security products. The company employs 135 workers, CFO Gerard Feeney said.

In March, Wave Systems reported a private offering of its stock worth $3.3 million. In May 2007, it completed a similar private placement, raising $14.2 million.
During 2007, Wave Systems posted a net loss of $19.9 million on revenue of $6.3 million.