Spherix Closes Rockstar Patent Acquisition Transaction and Enhances Its Patent
Portfolio in Wireless Communications and Telecommunication
Sectors -- Rockstar Acquires Equity Stake in Spherix-Venture to Be
Headed by Seasoned Monetization Executive
TYSONS CORNER, VA -- (Marketwired) -- 07/29/13 -- Spherix
Incorporated (NASDAQ: SPEX) an intellectual property development and
life sciences company, today announced that it has closed the
previously announced agreement to acquire a group of seven patents in
the mobile communication sector, from Rockstar Consortium, the owner
of over 4,000 patents formerly owned by Nortel Networks.
Under the terms of the agreement, Spherix acquired four families of
mobile communication patents in exchange for initial consideration of
up-front cash and $1,000,000 in Spherix common stock issued at $5.65
per share. Rockstar will also receive a percentage of future profits
after recovery of patent monetization costs and an initial priority
return on investment to Spherix. The shares are subject to a lockup
agreement restricting future sales, subject to the satisfaction of
certain price and volume targets.
Spherix Interim CEO Harvey Kesner stated, "We believe that we have
entered a new phase of our development and are pleased to announce
successful completion of our recent patent and monetization
partnership with Rockstar. We have been working with our colleagues
at Rockstar to identify opportunities for collaboration between us
and this resulted in the selection of this suite of seven patents
that cover mobile communication devices. We selected a suite of
patents with well documented and easily understandable technology so
that we can quickly proceed to seek agreements to support
commercialization efforts and enforcement, if required. This
acquisition, coupled with our recently announced acquisition of
several hundred patents issued to Harris Corporation, allows us to
expand our activities in the wireless communications and
telecommunication sectors including antenna technology, Wi-Fi, base
station functionality, and cellular. Our incoming CEO Anthony Hayes
was instrumental in negotiating these contracts and securing
appropriate patents for enforcement. As has been widely reported,
Anthony is a seasoned monetization executive with numerous 'w
under his belt, who will oversee our licensing and enforcement
efforts and has broad access to patent owners and inventors."
Rockstar Consortium was launched in 2011 as an intellectual property
(IP) licensing company. Based on Nortel Networks' groundbreaking
innovation engine, Rockstar manages a highly valued patent portfolio
relevant to virtually all telecom and high tech services and devices.
Rockstar is deeply committed to advancing innovation worldwide
through its patent licensing program. To learn more about Rockstar
please visit www.ip-rockstar.com.
Spherix Incorporated was launched in 1967 as a scientific research
company. Spherix presently offers a diversified commercialization
platform for protected technologies. The company continues to work on
life sciences and drug development and presently is exploring
opportunities in nutritional supplement products relying on its
D-Tagatose natural sweetener as a GRAS ingredient. Spherix is
committed to advancing innovation by active participation in all
areas of the patent market. Spherix draws on portfolios of pioneering
technology patents to partner with and support product innovation.
Through its recently announced acquisition of several hundred patents
issued to Harris Corporation Spherix intends to expand its activities
in wireless communications and telecommunication sectors including
antenna technology, Wi-Fi, base station functionality, and cellular.
Forward Looking Statements
Certain statements in this press release constitute "forward-looking
statements" within the meaning of the federal securities laws. Words
such as "may," "might," "will," "should," "believe," "expect,"
"anticipate," "estimate," "continue," "predict," "forecast,"
"project," "plan," "intend" or similar expressions, or statements
regarding intent, belief, or current expectations, are
forward-looking statements. While the Company believes these
forward-looking statements are reasonable, undue reliance should not
be placed on any such forward-looking statements, which are based on
information available to us on the date of this release. These
forward looking statements are based upon current estimates and
assumptions and are subject to various risks and uncertainties,
including without limitation those set forth in the Company's filings
with the Securities and Exchange Commission (the "SEC"), not limited
to Risk Factors relating to its patent business contained therein.
Thus, actual results could be materially different. The Company
expressly disclaims any obligation to update or alter statements
whether as a result of new information, future events or otherwise,
except as required by law.
Phone: (703) 992-9325
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