Ribbon Communications has raised $52 million from the sale of its stock to help pay its debts and increase its working capital.
The stock was sold as a private placement to selected investors, including Neuberger Berman and some of the company’s biggest shareholders, such as JPMorgan Chase and Swarth Group.
The communications software company says it will issue roughly 17 million shares in the private placement at $3.05.
Mick Lopez, CFO at Ribbon Communications, said: “We are very appreciative of the incremental investment being made by our existing and new shareholders.
“The new capital will provide the company additional financial flexibility as we execute on our strategy to invest in product development and drive near-term profitable growth.”
Evercore Group served as the sole placement agent of the private placements, and B. Riely Securities acted as Ribbon’s financial advisor.
The securities have not been offered in the United States as they were not registered under the Securities Act and other necessary state securities laws.
Ribbon has said it will file a registration statement with the Securities and Exchange Commission (SEC) to enable the resale of its stock in the USA.
The company made a point of clarifying that, although it intended to ratify the resale of its stock in the USA, potential buyers and sellers would need to wait until they had been registered.
Other recent financial developments for Ribbon include its reported loss of $30.2 million on its quarterly earnings results. $12 million of this loss is related to the sale of its Kandy Communications business.
The company also made $25 million in voluntary debt payments in the first half of 2022.
