CIC Obtains $2M Unsecured Line of Credit
Redwood Shores, CA, May 7, 2014 – Communication Intelligence Corporation (“CIC”) (OTCQB: CICI), a leading supplier of digital transaction management software solutions, encompassing electronic signature, biometric authentication and simple-to-complex work flow management, today announced that it has entered into a credit agreement with an affiliate of ICG Global Limited (“ICG”) to provide CIC with up to $2 million of unsecured debt. Aegis Capital Corporation (“Aegis”) acted as CIC’s financial advisor in connection with obtaining the line of credit.
“We are proud to partner with ICG in the establishment of this creative financing structure that complements our existing and historical funding resources,” said Philip Sassower, chairman and chief executive officer for CIC. “This incremental financing availability provides CIC’s capital with added cushion and strengthens our ability to continue advancing our enterprise solutions in a market that is developing rapidly.”
“The provision of this credit facility is a reflection of our confidence in the strength of the market opportunity available to CIC, as well as its strategy and management,” said Larry Russell, director for ICG. “We are delighted to have the opportunity of participating in CIC’s growth.”
The $2 million is available for a period of eighteen months. Amounts drawn under the line of credit are subject to a 15% original issue discount so that, if fully drawn down, would result in approximately $2.35 million of unsecured indebtedness. This debt can be converted into common stock at ICG’s option at a conversion price of $0.0275, subject to certain exceptions. ICG received a facility fee in the form of a three year warrant to purchase 10,909,090 shares of common stock at $0.0275 per share. ICG is also entitled to 50% warrant coverage on amounts drawn down under the line of credit.
Additional information on this transaction will be available in the CIC’s Current Report on Form 8-K that will be filed with the Securities and Exchange Commission later this week and will be available at www.sec.gov.