Tuesday, September 30, 2008

Wave Systems’ stock sale generates $211K

By Mass High Tech Staff

Data security developer Wave Systems Corp. has announced the completion of its sale of 48 shares of 8 percent Series I convertible preferred stock to investors for $4,400 per share to total $211,200. News of the stock sale comes about two weeks after the company announced its plans to sell 172 shares to generate $756,800. Lee-based Wave Systems (Nasdaq: NAVX) said the proceeds would help fund the company’s ongoing operations.

The common stock shares being sold will be convertible into 10,000 shares of Class A common stock at a conversion rate of 44 cents per share after Wave’s Class A common stock reaches $1.10 for 15 consecutive trading days, company officials said.

The stock sale marks the latest news of financial woes the company has endured. In August, Wave Systems got news of its non-compliance with the market value rule for continued inclusion on the Nasdaq Global Market. Wave officials had planned an appeal hearing to be held within six weeks.

Wave Systems, which was founded as Indata Corp. in 1988, develops client and server-based data security products. In March, the company 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 completed an initial public offering in 1999. In 2007 it reported a net loss of $19.9 million on revenue of $6.3 million.