DENVER, CO, May 7, 2012 – Roomlinx, Inc. (OTCBB: RMLX), the innovative developer of interactive TV (iTV) applications for the hotel and resort industry, today announced the closing of a $3.0 million private placement financing with institutional and other accredited investors. Pursuant to the securities purchase agreement, Roomlinx sold 1,200,000 shares of the Company’s common stock at $2.50 per share and issued three-year warrants to purchase 600,000 shares of the Company’s common stock at an exercise price of $3.75 per share. The company can raise up to $1 million of additional equity financing until May 25th on the same terms of this offering with potential accredited institutional investors who have previously been made aware of the offering by the Company or its placement agents.
Net proceeds from the offering, which are anticipated to be approximately $2.8 million after placement fees and other offering expenses, will be used for general corporate and working capital purposes including deployment of the Company’s iTV applications under a Master Service Agreement with Hyatt Corporation announced on March 13, 2012.
“This financing, combined with our recently announced Hyatt relationship, represents an important milestone for our Company,” said Roomlinx CEO Michael Wasik. “Not only does the financing provide capital to support growth, we believe the addition of new institutional investors to our shareholder base will also support our longer term goal to increase the trading liquidity in our stock which we believe will benefit all of our shareholders.”
This release does not constitute an offer to sell or the solicitation of an offer to buy the securities. The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws. Accordingly, the securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. Further details of the private placement will be described in a Current Report on Form 8-K to be filed with the SEC by the Company and all of the transaction documents will be attached to the Form 8-K.