Lee, MA
December 15, 2015

Wave Systems Corp. (NASDAQ: WAVX), an enterprise security software provider, announced today that it has completed a financing agreement with Marble Bridge Funding Group, Inc. (MBFG) in the form of a secured accounts receivable and purchase orders financing facility of up to $3 million. The Company has also engaged GrowthPoint Technology Partners to advise it in evaluating its strategic alternatives, including potential M&A opportunities.

Advances on the accounts receivable facility will be made on qualified accounts receivable that are approved by MBFG. The duration of this facility is for 12 months with an automatic 12-month renewal unless Wave terminates the facility or is in default with MBFG.

Advances on the purchase order facility can be made on qualified purchase orders or contracts approved by MBFG that will convert into an account receivable within 45 days from funding.  The duration of the purchase order facility is for 9 months or the termination of the credit facility, whichever occurs first.

Additionally, Wave issued a total of 5.5 million warrants to MBFG and its co-lender of Class A common stock at an exercise price of $0.15 per share. These warrants cannot be exercised for a period six months after the effective date of the transaction and will expire on the fifth anniversary of the issue date.  

“Closing on this financing agreement is an important development for Wave as it provides capital to help finance current operations and was an important condition for us to engage a firm to advise us on pursuing our strategic alternatives,” said Bill Solms, President and CEO, Wave Systems Corp. “This type of financing facility is not new to Wave as the Company factored its royalties from Dell for several years. Wave is continuing to pursue raising additional capital to meet our needs as required.”

About Marble Bridge Funding Group

Marble Bridge Funding Group is a strategic commercial finance partner providing funding, capital strategies, cash-flow management, and advisory services to growth-driven entrepreneurial companies. As a privately held direct lender, Marble Bridge finances growing businesses from startups to companies with over $50 million in sales, with a variety of customized programs and services. Since 1997 Marble Bridge Funding Group has been working with bankers, brokers, CPAs, financial advisors, and local, state and federal agencies to provide capital and related financial services to our clients. We remain a visible presence in the community, assisting government and private institutions that serve small businesses.

About GrowthPoint Technology Partners

GrowthPoint Technology Partners provides M&A and financial advisory services to technology companies around the world. We have the depth of expertise acquired from hundreds of completed transactions. As former CEOs, founders, inventors, venture capitalists and advisors, we bring a wealth of strategic and financial experience to our clients with the sole objective of helping them achieve success. Headquartered in Silicon Valley, GrowthPoint has completed transactions with virtually all of the major technology companies and has client relationships that span the globe. Our uniqueness is the depth of our technology expertise and curiosity. Whether it is M&A, capital raising or strategic advisory services, we bring the same process expertise and focused commitment to every engagement.  

For more information please contact:

Wave Contact:
Wave Systems Corp.
Walter A. Shephard, CFO
413-243-1600
investors@wave.com

 

Investor Relations:
David Collins, Chris Eddy
Catalyst Global LLC
212-924-9800 office
wavx@catalyst-ir.com