Orbital Tracking Corp. announced today that it has raised $1.1 million in two private placements with new and existing institutional shareholders.
The Company sold an aggregate of 1,100,000 shares of Series F Preferred Stock for an aggregate purchase price of $550,000 and an aggregate of $605,000 in principal amount of original issue discount convertible notes due December 28, 2017 for an aggregate purchase price of $550,000. The Company intends to utilize the majority of the proceeds of this capital raise to fund continued expansion in North America and new international markets in Asia, as well as commence production and manufacturing of its new line of Company-branded dual-mode asset tracking products ahead of expected product sales in early 2016. Chardan Capital Markets, LLC, acted as the sole placement agent in connection with the offering.
“We are pleased to have completed this important round of funding which will allow us to continue our global expansion in key geographies including the United States and in new markets in Asia where we continue to see strong demand for cost effective and reliable satellite communications products,” said David Phipps, Chief Executive Officer of Orbital Tracking Corp. “As we enter 2016, this new capital will support our long-term growth plans while supporting the launch of our new dual-mode tracking products designed to uniquely meet the global tracking needs of our clients and an expanding commercial and government new business pipeline.”
About Orbital Tracking Corp.
Orbital Tracking Corp. provides satellite based tracking, services as well as mobile voice and data communications services globally via satellite to the commercial and Government users. Orbital specializes in services related to the Globalstar satellite constellation, including ground station construction, simplex tracking services and satellite telecommunications voice airtime. Orbital operates various e-commerce retail and tracking portals where users around the world can purchase satellite hardware and track assets in real-time on mobile devices or PCs. For more information regarding Orbital, please visit www.orbitaltracking.com.
Certain statements in this release constitute forward-looking statements. These statements include the capabilities and success of Orbital’s new business and any of its products, services or solutions identified therein, the appeal of Orbital’s website to potential customers, Orbital’s ability to capture any portion of the global satellite retail market, the Company’s or Orbital’s ability to secure and/or satisfy government, commercial or other customers for any of their respective products, Orbital’s ability to leverage its government-related experience, the Company’s or Orbital’s ability to execute on its strategies or to accomplish any of its goals or objectives, the Company’s or Orbital’s ability to generate new revenue streams, the ability of Orbital to get Globalstar certifications for its tracking devices, the further advancement, development or commercialization of any of the Company’s or Orbital’s products, the capabilities and advantages of, and costs related to, the Company’s and Orbital’s technology and products and services, and the suitability of any of Orbital’s products or services for any particular application. The words “forecast,” “project,” “intend,” “expect,” “plan,” “should,” “would,” and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, any of which could cause the Company to not achieve some or all of its goals or the Company’s previously reported actual results, performance (finance or operating) to change or differ from future results, performance (financing and operating) or achievements, including those expressed or implied by such forward-looking statements. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, the Company’s Quarterly Reports on Form 10-Q and other filings submitted by the Company to the SEC, copies of which may be obtained from the SEC’s website atwww.sec.gov. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.