MCLEAN, Va., Feb. 26, 2014 /PRNewswire/ -- WidePoint
Corporation (NYSE Mkt: WYY), a leading provider of secure,
cloud-based, enterprise-wide solutions and services in mobile
communications management and identity management, announced today
the pricing of an underwritten public offering of 7,876,497 shares
of its common stock at a purchase price of $1.38 per share. The gross proceeds to the
Company from this offering are expected to be approximately
$10.9 million, before deducting
underwriting discounts and other estimated offering expenses. In
addition, WidePoint has granted the underwriters a 30-day option to
purchase up to an aggregate of 1,181,475 additional shares of
common stock to cover over-allotments, if any. All of the shares in
the offering are to be sold by WidePoint. While the offering is
expected to close on February 28,
2014, the closing of the offering is subject to customary
closing conditions and therefore there can be no assurance as to
whether or when the offering will be completed.
WidePoint expects to use the net proceeds from the offering for
general corporate purposes, including for repayment of debt,
acquiring businesses and investing in other businesses.
Commenting on the offering, Steve
Komar, Chairman and CEO of WidePoint, said, "This capital
raise marks the beginning of an important chapter in the Company's
history. Over the previous few years including 2013, the Company
suffered from numerous headwinds including federal budgetary
constraints, government sequestration and costly efforts to defend
various contract awards. As we enter 2014, we are pleased to leave
these issues behind us and move forward with a stable base of
recurring revenue, a $600 million
blanket purchase agreement with the Department of Homeland Security
that we continue to believe has the opportunity to contribute more
than $75 million in incremental
annual revenue once fully ramped, and a number of compelling growth
opportunities in both the federal and commercial markets. This new
capital will help support and foster this positive business
momentum, while accelerating growth and positioning the business
for long-term value creation."
In connection with the offering, B. Riley & Co., LLC is
acting as sole book-running manager.
A shelf registration statement (No. 333-193250) relating to the
shares of common stock to be issued in the offering has been filed
with the Securities and Exchange Commission (SEC) and is effective.
A preliminary prospectus supplement and accompanying base
prospectus relating to the offering was filed with the SEC on
February 25, 2014, and the final
prospectus supplement and accompanying base prospectus relating to
the offering will be filed with the SEC and will be available on
the SEC's website located at www.sec.gov. In addition, electronic
copies of the final prospectus supplement and accompanying
prospectus, when available, may be obtained by contacting the by
contacting the Compliance Department, B. Riley & Co., LLC,
11100 Santa Monica Blvd., Suite 800, Los
Angeles, California 90025 at (888) 295-0155 and at
compliance@brileyco.com.
This press release does not constitute an offer to sell, or the
solicitation of an offer to buy, these securities, nor will there
be any sale of these securities in any state or other jurisdiction
in which such offer, solicitation or sale is not permitted.
About WidePoint:
WidePoint is a leading provider of secure, cloud-delivered,
enterprise-wide mobile and information technology-based solutions
that can enable enterprises and agencies to deploy fully compliant
IT services in accordance with government mandated regulations and
advanced system requirements. WidePoint has several major
government and commercial contracts. For more information, visit
www.widepoint.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This press release may contain forward-looking
information within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended (the Exchange Act), including all
statements that are not statements of historical fact regarding the
intent, belief or current expectations of the company, its
directors or its officers with respect to, among other things: (i)
the company's financing plans; (ii) trends affecting the company's
financial condition or results of operations; (iii) the company's
growth strategy and operating strategy; (iv) the company's ability
to generate revenue under the blanket purchase agreement with the
Department of Homeland Security; and (v) the risk factors disclosed
in the Company's periodic reports filed with the SEC. The words
"may," "would," "will," "expect," "estimate," "anticipate,"
"believe," "intend" and similar expressions and variations thereof
are intended to identify forward-looking statements. Investors are
cautioned that any such forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties, many of which are beyond the company's ability to
control, and that actual results may differ materially from those
projected in the forward-looking statements as a result of various
factors including the risk factors disclosed in the company's Forms
10-K and 10-Q filed with the SEC.
For More Information:
Jim McCubbin, EVP
& CFO
|
Brett Maas or David
Fore
|
WidePoint
Corporation
|
Hayden IR
|
7926 Jones Branch
Drive, Suite 520
|
(646)
536-7331
|
McLean, VA
22102
|
brett@haydenir.com
|
(703)
349-2577
|
|
jmccubbin@widepoint.com
|
SOURCE WidePoint Corporation