Vringo, Inc., which designs software platforms for mobile social and video applications, announced the completion of a $2.5 million investment that took the form of a private placement of convertible notes in the amount of $2.5 million, primarily to venture capital firms Benchmark Capital and DAG Ventures.
According to the company, the convertible notes bear interest at the rate of 1.25% per annum and mature on January 1, 2012. Upon the closing of a subsequent financing by the Company, the convertible notes will automatically convert into the same securities as the subsequent financing.
Vringo also executed a Letter of Intent to acquire and merge operations with Zlango Ltd, a mobile messaging company. Vringo will issue 3,000,000 shares of its common stock and provide Zlango's management with a retention package comprised of options to purchase 250,000 shares of common stock. Zlango is the creator of a rich media messaging service that lets users add icons, themes, and images to standard text messages.