Sonic Foundry, Inc. (“Sonic Foundry” or the “Company”) (NASDAQ: SOFO), the trusted leader in video capture, management and delivery solutions, today announced that it has secured $9.7 million in funding in three separate transactions. It entered into a loan and guarantee agreement with Neltjeberg Bay Enterprises, LLC (“NBE”) for a $5.5 million loan at an annual interest rate of 12%. In addition, the company entered into a guarantee agreement and promissory note with Mark Burish, Chairman of the Board of Sonic Foundry, for $3 million at the same interest rate as the NBE note. Mark Burish also purchased 1.2 million common shares at a price of $1.02 per share.
“The total sum of $9.7 million provides us with significant liquidity to continue building our Vidable™ and Global Learning Exchange™ (GLX) initiatives. We are very optimistic that the two new lines of business will contribute significantly to revenue and long-term value creation for our shareholders,” said Sonic Foundry CEO Joe Mozden, Jr. “In In the current interest rate environment, it is particularly gratifying that we can raise capital at favorable rates relative to other companies in the broad middle market. Access to growth capital has become increasingly difficult, particularly at fixed rates versus variable rates, which have become more prevalent. With these financing agreements, we are confident that our growth strategy will allow us to easily cover debt payments, while giving us the time and track to achieve our goals. Although we have no control over the macroeconomic environment, we are committed to responsible management of our capital and our activities for the benefit of all our stakeholders. »
Mark Burish, Chairman of the Board of Sonic Foundry, added, “These financing transactions, including my personal participation, demonstrate the tremendous confidence that our Board of Directors has in the future of Sonic Foundry. It’s also important to note that the debt deal was led by Fred Kopko, CEO of NBE and former board member of Sonic Foundry. Fred resigned from our board to focus his attention on investing in high growth businesses like the transaction we announced today. It was an honor to work with Fred and on behalf of our Board of Directors and management, I thank him for his leadership and commitment to our vision.
About Sonic Foundry
Founded in 1991 and based in Madison, Wisconsin, Sonic Foundry (NASDAQ: SOFO) is dedicated to transforming the way the world works and learns through innovative and scalable technology solutions. We help our clients maximize the value of their video initiatives and infrastructure while leveraging our expertise and global footprint to help open up a smarter, more connected world for learners, workers and entrepreneurs worldwide. entire. Sonic Foundry’s family of brands includes Mediasite®, Video Solutions, Vidable™ and Global Learning Exchange™ trusted by thousands of educational institutions, businesses and healthcare organizations in dozens of countries around the world. For more information on how Sonic Foundry’s solutions can enable you and your organization to seize the opportunities of today and tomorrow, visit www.sonicfoundry.com.
This press release contains forward-looking statements about Sonic Foundry products and services within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements about our products and services . , our customers, our strategic investments, our new partnerships, our future operating results and any statements we make about the future of the business. These types of statements relate to matters subject to numerous risks and uncertainties. Actual results could differ materially from the forward-looking guidance we provide. Any forward-looking statements should be considered in the context of the risk factors disclosed in our periodic Forms 10Q, 10K and other filings with the SEC. These documents can be viewed online at www.sec.gov and other websites or may be obtained from the Company’s Investor Relations Department. All information and disclosures we make in this press release regarding our business, including any forward-looking guidance, are as of the date indicated, and we undertake no obligation to update or change such information, regardless of event. later.