Valicert secures $5 million equity investment

Valicert secures $5 million equity investment

California-based e-security vendor ValiCert has secured $5 million equity funding from private investment firm Palo Alto Investors.

Under terms of the agreement, ValiCert issued 1,716,974 shares of common stock at a fixed price of $2.91 per share. In addition, the vendor issued warrants, with a term of five years, to purchase an additional 357,702 shares of common stock at a fixed price of $3.49 per share.

ValiCert will be filing a registration statement with the Securities and Exchange Commission for the resale of the securities issued in connection with this agreement. These securities are not subject to adjustment for future stock price performance.

Yosi Amram, president and chief executive officer of ValiCert, has also taken an equity stake in the company. Financial terms have not been disclosed.

He says: "Although we believe our cash resources, independent of this financing, are sufficent to reach our profitability goal, having added balance sheet strength improves our market position."

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