SCOTTS VALLEY, California, February 2, 2009 – VirnetX Holding Corporation (AMEX: VHC) announced today that it had closed the public offering of 2,470,000 shares of its common stock at $1.50 per share. As further described in the prospectus for the offering which is available on the SEC’s EDGAR filing website, for each share purchased in the offering, an investor will receive a registered warrant to purchase 0.5 shares of VHC common stock at $2.00 per share, 0.5 shares of VHC common stock at $3.00 per share and 0.5 shares of VHC common stock at $4.00 per share. As these warrants are exercised, there will be a significant potential for additional capital that will directly benefit the Company. A 15c-211 has been filed for the listing of warrants on the OTCBB. If approved and symbols have been issued, the Company will update investors. The current proceeds from this offering totaled approximately $3,705,000. As of the closing of the offering, VHC has 37,369,985 shares of common stock outstanding.
VHC expects to use the new financing to fund the development of its licensing program, to fund its litigation efforts and for other corporate purposes.
VirnetX CEO, Kendall Larsen, said: “The additional funds raised give us the necessary working capital to fund operations through some critical licensing and litigation milestones. I am pleased that we were able to accomplish the financing during such difficult economic times. I am also pleased that the Company’s directors, officer, family and key employees participated in the raise and their participation accounts for 6%.”
About VirnetX
VirnetX Holding Corporation is engaged in developing products for real-time communications such as Instant Messaging and Voice over Internet Protocol, commercializing its patent portfolio and providing contract research, prototyping, systems integration and technical services. www.virnetx.com
Safe Harbor Agreement
Statements in this press release that are not statements of historical or current fact constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of VHC to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms “believes,” “belief,” “expects,” “intends,” “anticipates,” “will,” or “plans” to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in VHC’s reports and registration statements filed with the Securities and Exchange Commission, including those under the heading “Risk Factors” in the company’s final prospectus filed pursuant to Rule 424(b)(5) with the SEC on January 26, 2009.
Press Contact
Greg Wood
VirnetX Holding Corporation
831 438 8200
greg_wood@virnetx.com