Crossroad Systems looks to raise millions in stock offering

Sep 23, 2014
Austin Business Journal

Crossroads Systems Inc. is looking for another capital injection after filing for a proposed public offering of as much as $12 million in series H cumulative perpetual preferred stock options

The Austin-based IT company intends to use the proceeds of the offering to fund its efforts to monetize its patent portfolio, "including the costs of ongoing litigation and other proceedings" and to pay down debts, according to a company filing with the U.S. Securities and Exchange Commission

Crossroads Systems also said in its filing that it could use proceeds to fund the acquisition of other technologies or businesses, but said that no specific plans or negotiations to that effect currently exist

The company's series H stock would be traded on the Nasdaq Capital Market under the ticker symbol CRDSH, according to a company announcement

News of the offering sent Crossroads common shares sharply lower in early trading Monday, down 8 percent, or 19 cents, to $2.15 per share

Earlier in September, Crossroads Systems shares took a hit as the company reported a 25 percent decline in third quarter revenue

Print Article opens in new window