DecisionPoint Announces $4.0 million Strategic Investment
FOOTHILL RANCH, CA–(Marketwire – May 24, 2011) – DecisionPoint Systems, Inc. (OTCBB: DNPI), a leading provider of Enterprise Mobility and RFID solutions, today announced that it placed $4.0 million of Senior Subordinated Secured Notes with Sigma Opportunity Fund II, LLC.
Principal and interest on the notes, at a rate of 12% per annum, are due and payable on August 31, 2011. If the previously announced merger with Comamtech has occurred prior to August 31, 2011, then, on the date of consummation of the merger with Comamtech, the maturity date of the Note shall be extended to May 31, 2012 and the interest rate shall be increased to 24% (or, if lower, the maximum amount allowable by law) retroactive to the issuance date. If the merger with Comamtech has not occurred on or prior to August 31, 2011 (or has been cancelled prior to such date), then the principal amount and all accrued and unpaid interest shall automatically convert into 4,000 shares of Preferred Stock and the Company shall issue to the Holder 5,000,000 shares of common stock. Total cash received under the purchase agreement was approximately $3,600,000, net of fees and expenses. Should the merger with Comamtech occur, the Company expects to enter into a negotiation regarding the conversion of the Note into an equity investment.
“In addition to providing capital for the Company’s growth, this financing, coupled with DecisionPoint’s pending merger with Comamtech, will strengthen our balance sheet and, assuming a successful negotiation to convert the Note into equity, provide the remaining equity necessary to support the planned NASDAQ Capital Market listing application,” said Nicholas Toms, Chief Executive Officer of DecisionPoint. “The addition of Sigma, a well respected private equity fund, as a long-term strategic partner, significantly strengthens our core. We look forward to Sigma’s active involvement to serve as a catalyst for our evolution as a public company.”
Maydan Rothblum, Managing Director of the Sigma Opportunity Fund II, LLC, who has joined the Company’s Board of Directors commented, “A core tenet of Sigma’s investment philosophy is making direct investments into well run small-to-mid sized public companies. Specifically, we focus our attention on companies that are led by experienced management teams and that have established a leadership position in specific technology-driven segments characterized by significant growth potential. After an extensive due diligence process, we believe that DecisionPoint, and the markets it services, fit this description well.”
“The Enterprise Mobility technology segment is at an inflection point in its development due to a convergence of technologies, telecommunications networks, devices and price,” observed Sigma’s Managing Partner, Thom Waye. “There is a clear market need for DecisionPoint’s solutions and it has established itself as one of the leading players in the space. We believe that DecisionPoint is uniquely positioned to capitalize on the growth opportunity in the segment, given its experienced management team, rich operational history, Tier-1 customer base and vendor relationships, end-to-end service delivery capabilities and strong industry reputation.”
Further details regarding the agreements and transactions shall be set forth in the Company’s SEC filings.
About DecisionPoint Systems, Inc.
DecisionPoint Systems, Inc. (OTCBB: DNPI) delivers improved productivity and operational advantages to its clients by helping them move their business decision points closer to their customers. They do this by making enterprise software applications accessible to the front-line worker anytime, anywhere. DecisionPoint utilizes all the latest wireless, mobility, and RFID technologies. For more information on DecisionPoint Systems visit: http://www.decisionpt.com/news.php.
About Sigma Capital Partners
Sigma Capital Partners, LLC is a multi-strategy private equity firm that focuses on investing in small-to-mid size public companies operating primarily in the IT, Telecom and Technology industries. The Fund has an active, long-term, strategic investment approach. Sigma Capital works closely with management to unlock shareholder value and provide guidance and assistance in the areas of finance, capital markets, operations, strategy and business development. For more information please visit: www.sigmacp.com.
Under The Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company’s actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company’s periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company’s plans or expectation.