Marathon Patent to raise $5.2m in share sale

IP licensing and commercialization company Marathon Patent Group said it entered into definitive agreements with investors for the purchase and sale of 3,481,997 shares of common stock at a price of $1.50 per share.

The agreements also include warrants to buy up to 1,740,999 shares of common stock at an effective price of $0.01 per warrant with an exercise price of $1.70 per share.

The warrants will expire five years from the date of issuance.

Gross proceeds of the offering will be $5.2 million.

Marathon intends to use the net proceeds for working capital and “other general corporate purposes, including the acquisition of certain patent portfolios.”

Northland Capital Markets is acting as the exclusive placement agent for the registered direct offering and concurrent private placement.

The closing of the registered direct offering and the concurrent private placement is expected to take place on or about December 14, 2016, subject to the satisfaction of customary closing conditions.