CALGARY, Alberta-Zi Corp. announced it has completed financing, including a secured short-term credit facility valued at $3.3 million.
The credit facility, repayable on March 5, 2003, includes a commitment fee and interest at 12 percent per year. In addition, Zi issued 100,000 common share purchase warrants; each is convertible into one Zi common share and exercisable for two years at $2.33 per share.
The company believes that following its previously announced patent litigation settlement agreement and previous reductions in headcount, as well as the closing of its Zi Services business unit, it has reduced its overhead costs and will be capable of repaying the credit facility and funding its working capital requirements.
In other news, Kyocera Wireless Corp. will use predictive text input technology from Zi in its CDMA mobile phones, the companies announced.
“This licensing agreement, combined with our product announcements and product advancements in the United States, validates the strengths of our offering and positions us well with manufacturers to deliver to consumers in the North American market unmatched usability in their handsets,” said Gary Mendel, Zi’s vice president of sales and marketing.
