Network-1 Security Solutions Inc. (OTCBB:NSSI) acquired patent portfolio of Mirror Worlds, LLC on May 22, 2013. As per the transaction, Network-1 paid $3 million in cash, 5-year warrants to purchase 0.875 million shares of common stock of Network-1 at $1.40 per share, and 5-year warrants to purchase 0.875 million shares of Network-1 at $2.10 per share as consideration. The patent portfolio includes 9 issued United States patents and 5 pending applications covering foundational ... technologies that enable unified search and indexing, displaying and archiving of documents in a computer system. Network-1 also entered into an agreement with Recognition Interface, LLC, as per which Recognition received 5-year warrants to purchase 0.25 million shares of Network-1 common stock at $1.40 per share, and 5-year warrants to purchase 0.25 million shares of Network-1 common stock at $2.10 per share. Recognition had financed the commercialization of the Patent Portfolio prior to its sale to Mirror Worlds, LLC and retained an interest in the licensing proceeds of the Patent Portfolio held by Mirror Worlds, LLC. As per the agreement, Recognition will designate Frank Weil, Chairman of Abacus and Associates, Inc. to the Board of Directors of Network-1 and will also receive from Network-1 an interest in the net proceeds realized from the monetization of the patent portfolio as follows: (i) 10% of the first $125 million of net proceeds, (ii) 15% of the next $125 million of net proceeds, (iii) and 20% of any portion of the net proceeds in excess of $250 million. Abacus and Associates, Inc. also received a 60-day warrant to purchase 0.5 million shares of Network-1 common stock at $2.05 per share. In the event such warrants are exercised in full, Network-1 will issue to Recognition warrants to purchase 0.25 million shares of Network-1 common stock consisting of (i) warrants to purchase 0.125 million at an exercise price of $1.40 per share, and (ii) warrants to purchase 0.125 million shares at an exercise price of $2.10 per share.
Read More

Sponsored Financial Commentaries

To contact NETWORK-1 SECURITY SOLUTIONS, please visit . Company data is provided by Capital IQ. Please use this form to report any data issues.

Our data partners will research the update request and update the information on this page if necessary. Research and follow-up could take several weeks. If you have questions, you can contact them at bwwebmaster@businessweek.com.