Boston, MA 05/29/2014 (wallstreetpr) – Things look to be turning sour for investors at,Spherix Inc. (NASDAQ:SPEX), which continues to register a mix turnaround of events in the stock exchange. The company’s stock is already down in the market by highs of $36.71% in early- morning trading session despite being a buzz of surge in the previous trading session. The bearish nature of the stock in the early trading session comes as the company confirmed it had entered into a placement agent agreement with Laidlaw & Company UK Ltd.
Spherix Selling 10M Shares
It is not clear whether the agreement with Laidlaw is what is causing the company’s stock to plummet by such high margins. Under the terms of the agreement, Spherix agreed to sell 10 million shares of Series I Convertible preferred stock. The stock is to be offloaded in a registered direct offering at a share purchase price of $2 a share. Each share will consequently be converted into the company’s common stock.
Spherix Inc. (NASDAQ:SPEX) expects the offering to close on June 2, 2014. Net proceeds coming after deduction of agent fees and other expenses are expected to come in at approximately $18.3 million. Spherix looks to have achieved a substantial amount of financial sobriety as part of the proceeds will go directly to the redemption of the company’s series I Convertible Proffered stock, valued at $5 million.
Senate Makes a Pause on a Patent Bill
Additional funds after redemption of the preferred stock will go straight to cater for other general working capital purposes. Spherix Inc. (NASDAQ:SPEX)’s shares plummeting comes as a surprise considering the company received some of the finest news from senate on a bill that aimed at controlling patent trolls in the industry. Earlier in the week senate opted to shelve the bill citing lack of substantial quorum across the divide on companies supporting and those opposing it.
Parties in support of the patent bill argued that the bill would go a long way in curtailing unnecessary lawsuits that are normally filed by patent trolls. In contrast, opponents of the bill had a clear stance maintaining that the bill would have protected small investors against big companies that have massive financial backing.
