Capital Markets: Nexit invests in Blyk; Veraz close to closing Dialogic merger; and more

Venture capital firm Nexit Ventures said it led a consortium of investors in a 17 million Euro ($22 million) investment in Blyk, a mobile messaging media company that focuses on connecting young people with brands and other interests. The company said the investment will help it accelerate its strategic partnering with mobile operators worldwide. Blyk launched its service in 2007.
Veraz Networks Inc. said based on the receipt of preliminary proxies, the company believes it has sufficient votes to approve its proposed merger with Dialogic Corp. The company said several of its largest shareholders, including ECI Telecom, Argonaut Holdings, Norwest Venture Partners, Prescott Group, Star Bay Partnerships controlled by Levensohn Venture Partners, and members of its board of directors have all voted unanimously in favor of the merger. The deal is expected to close in October.
Leap Wireless Inc. adopted a tax benefit preservation plan designed to preserve the long-term value of its net operating loss carryforwards in the event of an ownership change. As of June 30, the company had NOLs of about $1.7 billion, which can be used to reduce federal and state income tax obligations. Under the preservation plan, the company’s board of directors declared a dividend of one preferred stock purchase right on each outstanding share of Leap common stock. The preferred stock purchase rights will separate from common shares if an owner acquires 4.99% or more of leap common stock. The company said recent trading in its stock has increased the risk of an ownership change under current tax rules.
WPCS International Inc. announced results for its first fiscal quarter of 2011, which ended July 31. The company said it recorded revenues of $28.9 million during the quarter, up 14% from $25.3 million during the same period last year. Net loss for the quarter was $376,000, or 5 cents per share, a reversal of net income of $435,000, or 6 cents per share, reported during the same quarter a year ago.