SAN JOSE, CA -- (Marketwired) -- 12/11/13 -- AltiGen Communications, Inc. (OTCQX: ATGN), a leading provider of Microsoft-based Unified Communications solutions, today announced it has completed a private placement transaction of $1M through the sale of its common stock. The company issued approximately 6.7 million shares of its common stock at a purchase price of $0.15 per share. The private placement transaction closed on December 5, 2013. Company management and accredited investors participated in this transaction. The proceeds from the transaction will be used to fund the company's new private cloud business initiative and for general operating capital.
Based on its all-software Unified Communications (UC) platform, the new MaxCS Private Cloud solution will enable both new and existing customers to substantially eliminate the capital expense traditionally associated with deploying on premise business communications systems. MaxCS Private Cloud will be sold and supported by AltiGen's extensive certified reseller partner channel, many of which are currently involved in various stages customer cloud-based deployments.
One such organization is Affiliated Technology Solutions (ATS), AltiGen's long time top producing reseller partner. According to Tom Welsh, Managing Director of ATS, "The new MaxCS Private Cloud solution is opening up a significant number of new business opportunities for ATS. The combination of an all software UC solution which can be deployed in the customer's data center or in the cloud, provides customers with the ultimate flexibility. Because of the many new business prospects enabled by MaxCS Private Cloud, my company was genuinely excited to participate in AltiGen's equity raise and to help drive the company to the next level."
"The new round of funding allows AltiGen to further focus and expand our MaxCS Private Cloud initiative", said Jeremiah Fleming, President and CEO of AltiGen Communications. "We are pleased that ATS, AltiGen's long time, well respected and successful partner, has not only adopted MaxCS Private Cloud in a big way, but also has made a sizeable investment in AltiGen. Moreover, having the AltiGen management team significantly contribute to the equity raise sends a strong message that we are serious about taking AltiGen to new levels of success."
The securities described herein have not been registered or qualified for sale under the Securities Act of 1933, or any state's securities laws. Such securities are offered pursuant to exemptions from such registration or qualification. These securities are exempt from registration under Rule 506 of Regulation D of the Securities Act of 1933.
Safe Harbor Statement
The Forward-looking statements contained in this press release are based upon the Company's current expectations, beliefs, plans and assumptions, which are subject to a number of risks and uncertainties including, but not limited to: statements regarding the continued market acceptance of our Microsoft-based Unified Communications solutions, the successful introduction of our MaxCS Private Cloud product offering, and our ability to take the Company to new levels of success. Actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
The forward-looking statements contained in this press release are also subject to unknown risks and uncertainties, including but not limited to, risks related to AltiGen's limited operating history. For a more detailed description of AltiGen's performance, please refer to AltiGen's audited Annual Report filed with the OTCQX over-the-counter market for the fiscal year ended September 30, 2012. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results. Forward-looking statements speak only as of the date the statement was made. The Company does not undertake any obligation to update any forward-looking statements.