Tuesday, August 12, 2008

Wave Systems hopes to sweep in $821K in stock offering

By Mass High Tech Staff

Lee-based security and authentication software maker Wave Systems Corp. has announced the company will offer investors more than 1.3 million shares of common stock at a price of 60 cents per share in an effort to raise $821,000. Investors in the offering will also receive three-year warrants to purchase an aggregate of 342,083 shares of Wave’s common stock for 65 cents per share.

The funds, according to Wave officials, will be used for the company’s ongoing operations.

The offering comes as the company tries to prevent its stock from being delisted. In July, Wave Systems (Nasdaq: WAVX) received a notice that the company’s common stock was subject to potential delisting from the Nasdaq Global Market because the market value of the stock was below $50 million for 10 consecutive business days. The firm was given until August 18 to comply.

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.

Wave Systems, which was originally founded as Indata Corp. in 1988, develops client and server-based data security products. The company went public in 1999, and in 2007 reported a net loss of $19.9 million on revenue of $6.3 million.