Axiologix, Inc., an international technology and services company that provides cloud-based products and services, has entered into a $7.5 million preferred equity investment with Ironridge Technology Co., a division of Ironridge Global.
The firm intends to use proceeds from this investment to fund operational growth. Included in that growth is the company's joint venture, which it just announced on May 2, as well as to make more acquisitions and, finally, to pay off debt in the long run.
Axiologix has agreed to issue Ironridge restricted Series C convertible preferred shares as funds are shaved down on a monthly basis.
The shares are convertible into restricted common stock at a fixed price of $0.0008 each, but it will take Ironridge a minimum of one year after issuance to will to convert the preferred shares into common stock.
With each year, the preferred shares will collect dividends of 8 percent (this figure is subject to common stock share price performance during the period that will either decrease or increase the dividends payable).
May 2 marked the first closing, wherein Axiologix received $50,000. From now on, the closings will take place on or just after the first day of each calendar month.
For more information, you can read the in-depth details of the transaction here.
John C. Kirkland, the managing director of Ironridge Global Partners, was all smiles in a statement acknowledging the deal.
“We are very pleased to make this next commitment to Axiologix following our first $800,000 investment earlier this year” Kirkland stated. “According to an April 2013 report from Infonetics Research, the global VoIP services market totaled $63 billion in 2012, and demand for business VOIP services, enterprise cloud-based services, hosted VoIP and UC services, SIP trunks, and managed IP PBX services all grew in 2012 from 2011. Demand for cloud telephony and unified communications services alongside SIP trunking is increasing as more multi-site businesses seek out hybrid solutions. Vincent and his Axiologix team have executed well against their stated plans and fully performed as promised."
The Chairman and CEO of Axiologix, Vincent Browne, shared his gratitude with Ironridge for “showing such confidence in what we are working toward.”
Brown added that thanks to the equity funding, the company will have the necessary foundations to “underpin its ambitious plans.”