Ribbon Communications announced that it has executed a securities purchase agreement to raise gross proceeds of approximately $52 million in a private placement financing of common stock.
The private placement investors were led by Neuberger Berman client funds, and included Ribbon's two largest shareholders, JPMorgan Chase & Co. and Swarth Investments and Heights Capital Management, among other investors.
Ribbon intends to use the net proceeds from the private placement to fund general corporate purposes, including capital expenditures, working capital and debt repayment.
Ribbon will issue approximately 17,050,000 shares of common stock in the private placement at a price of $3.05. The private placement is expected to close on or about August 16, 2022, subject to customary closing conditions.
Ribbon Communications CFO Mick Lopez
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.
