Glowpoint Inc. closed its merger with collaboration technology company Oblong Industries Inc.
In connection with the merger, Glowpoint closed the first tranche of its previously announced issuance of series E convertible preferred stock for about $2.5 million in gross proceeds. The series E convertible preferred stock issued in the series E financing is automatically convertible into about 880,700 shares of Glowpoint's common stock at $2.85 per share of common stock upon receipt of Glowpoint stockholder approval, approval of the NYSE American for the continued listing of the combined company following such conversion, and other customary conditions.
Investors in the series E financing have committed to purchase an additional $1.25 million of Glowpoint's series E convertible preferred stock, upon demand by Glowpoint. Assuming consummation of the second tranche of the series E financing, Glowpoint will have about 23.9 million shares of common stock outstanding, pro forma for the conversion of the series D preferred stock issued in the merger and conversion of the series E preferred stock.
In connection with the closing, John Underkoffler, the former CEO of Oblong and now chief technology officer of Glowpoint, was appointed to Glowpoint's board. David Giangano resigned as a member of Glowpoint's board.
Glowpoint intends to hold an annual meeting of its stockholders in the fourth quarter to seek a vote on the election of directors, the approval of the conversion of the series D convertible preferred stock issued in connection with the merger and the series E convertible preferred stock issued in the series E financing, among other matters.
