An affiliate of Fortress Investment Group agreed to extend a US$10 million credit to Crossroads Systems Inc., one of the leading data archive solutions providers.
Richard K. Coleman, Jr., interim president and CEO of Crossroads Systems, said he is elated that Fortress recognized the "untapped" value of the company's intellectual property portfolio.
"Crossroads has a proven record of generating IP revenue, recognizing more than US$60 million in license fees. The Fortress financing is an important component of Crossroads' previously announced strategy to access capital through the monetization of our patent portfolio, and underscores the value of our extensive IP portfolio," he added.
According to the agreement, Fortress will assume 1,454,545 warrants from Crossroads to purchase common stock. The warrants are priced at the initial conversion cost of US$2.065 per share.
Fortress is a global investment firm that manages around US$56 billion in assets, translating to over 1,500 clients and investors all over the world.
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