PRISM TECHNOLOGIES GROUP, INC. (NASDAQ:PRZM) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a
Material Definitive Agreement
On December 21, 2016, Prism Technologies, LLC (Prism), a wholly
owned subsidiary of Prism Technologies Group, Inc. (Company)
entered into a non-recourse financing agreement (Agreement) with
an unrelated party. The Company has received $500,000 and intends
to use the funds for working capital and general corporate
operations. No equity was granted to the financing company in the
transaction.
Summary of Material Terms
Repayment.Prisms repayment obligation generally is limited to the
proceeds it receives in connection with the patent infringement
litigation with Sprint Spectrum, L.P, pending in the United
States Court of Appeals for the Federal Circuit (Prism
Technologies LLC v Sprint Spectrum L.P. D/B/A/ Sprint
PCS; Case Nos. 16-1456 and 16-1457) and any related
appeals or remands (collectively, the Sprint Litigation). After
payment of any fees to Prisms litigation counsel, the financing
party is entitled to receive:
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two and half times the funding amount ($1,250,000) if |
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three times the funding amount ($1,500,000) if re payment |
|
In addition, Prism agreed to reimburse the financing |
Principal Protection. To the extent not recovered from the
proceeds associated with the Sprint Litigation, the financing
party is entitled only to recover its principal ($500,000) from
the proceeds of other current or future cases or patent license
instituted by the Companys subsidiaries.
Right to Conduct Litigation and Settle.Prism is required to
inform the financing party of settlement offers. However, Prism
retains the sole and exclusive right to continue or settle any
litigation, subject only to a requirement to not act in bad
faith.
Security Interest. As security for the repayment and performance
of its obligations, Prism granted the financing company a
security interest in the proceeds received from the Sprint
Litigation and any other patent infringement cases.
Other Terms. The Agreement contains other customary terms and
conditions, including provisions regarding representations and
warranties, termination and indemnification.
The foregoing summary description of the Agreement does not
purport to be complete and is qualified in its entirety by the
full text of the Agreement, which the Company expects to file as
soon as practicable.
About PRISM TECHNOLOGIES GROUP, INC. (NASDAQ:PRZM)
Prism Technologies Group, Inc., formerly Internet Patents Corporation, is engaged in the business of licensing and enforcing a portfolio of patents relating to technologies developed by it. The Company’s subsidiary is Prism Technologies, LLC (Prism). Prism has two primary operating subsidiaries: Secure Axcess, LLC and Millenium Biologix, LLC. Prism also operates an intellectual property licensing and enforcement business. The Company and its subsidiaries own a portfolio of patents with over 50 issued patents in the areas of computer and network security, semiconductors and medical technology. The Company’s patent portfolio includes Gregg Patents for device authentication and access to protected resources; Glazer Patents for image recognition and Website authentication; Weber Patents for multiple screen computer display; Pugh Patents for synthetic biomaterial compound; Wallace Patents for encrypted cookies, and Quizid Patents for authentication tokens. PRISM TECHNOLOGIES GROUP, INC. (NASDAQ:PRZM) Recent Trading Information
PRISM TECHNOLOGIES GROUP, INC. (NASDAQ:PRZM) closed its last trading session down -0.002 at 0.283 with 31,548 shares trading hands.