Insignia Solutions secures equity investment of $18 million

<%=company1%>, a leading provider of accelerated Java technology-based solutions for Internet appliances and embedded devices, announced the completion of a private placement of equity for $18 million. Jefferies & Company, Inc. acted as placement agent for the financing. The investors included several leading institutional investors, a director of the company, and strategic investors, Sun Microsystems, Inc. and BSQUARE Corporation.

The proceeds from the private placement will significantly strengthen the company's balance sheet and will be used for product development, expansion of the company's sales force and for general corporate purposes. Under the terms of the private placement, the investors will receive American depositary shares (ADSs) at $5 per ADS. Additionally, investors will also receive one warrant for every two ADSs purchased. Each warrant gives investors the right to purchase one ADS at an initial exercise price of $6 per ADS.

"We're very excited to have completed this $18 million private placement," commented Richard Noling, president and chief executive officer of Insignia Solutions. "It's a tremendous vote of confidence from such a quality group of investors. We're especially pleased to have Sun Microsystems and BSQUARE take a vested interest in the direction of our company. With the money raised from the private placement, we are able to strengthen our balance sheet, increase our sales and marketing initiatives, and continue to invest in product development. Today we are much better equipped to pursue our strategic objectives beyond the immediate future and look toward building a solid foundation to grow our revenues and achieve operating profits."

Insignia's patent-pending Jeode virtual machine technology is currently licensed by such companies as Compaq Computer Corporation, eMachines, Inc., Fujtisu PC, Gemstar/TV Guide, Intel Corporation, Olivetti Lexikon, Phoenix Technologies, Quantum Corporation, RAVISENT Technologies, Victor Data Systems (a subsidiary of JVC), and Wyse Technologies. Insignia Solutions is publicly-held with headquarters located in Fremont, CA. Its main R&D facility is in High Wycombe, England.

Edited by Bruce A. Bennett
Managing Editor, Embedded Technology.com