Wave Systems Secures Financing Agreement and Engages Investment Bank to Evaluate Strategic Alternatives

LEE, MA--(Marketwired - Dec 15, 2015) - Wave Systems Corp. (NASDAQ: WAVX), an enterprise security software provider, announced today that it has completed a financing agreement with Marble Bridge Funding Group, Inc. (MBFG) in the form of a secured accounts receivable and purchase orders financing facility of up to $3 million. The Company has also engaged GrowthPoint Technology Partners to advise it in evaluating its strategic alternatives, including potential M&A opportunities.

Advances on the accounts receivable facility will be made on qualified accounts receivable that are approved by MBFG. The duration of this facility is for 12 months with an automatic 12-month renewal unless Wave terminates the facility or is in default with MBFG.

Advances on the purchase order facility can be made on qualified purchase orders or contracts approved by MBFG that will convert into an account receivable within 45 days from funding. The duration of the purchase order facility is for 9 months or the termination of the credit facility, whichever occurs first.

Additionally, Wave issued a total of 5.5 million warrants to MBFG and its co-lender of Class A common stock at an exercise price of $0.15 per share. These warrants cannot be exercised for a period six months after the effective date of the transaction and will expire on the fifth anniversary of the issue date. 

"Closing on this financing agreement is an important development for Wave as it provides capital to help finance current operations and was an important condition for us to engage a firm to advise us on pursuing our strategic alternatives," said Bill Solms, President and CEO, Wave Systems Corp. "This type of financing facility is not new to Wave as the Company factored its royalties from Dell for several years. Wave is continuing to pursue raising additional capital to meet our needs as required."

About Wave Systems Corp.
Wave Systems reduces the complexity, cost and uncertainty of data protection by starting inside the device. Unlike other vendors who try to secure information by adding layers of software for security, Wave leverages the hardware security capabilities built directly into endpoint computing platforms themselves. Wave has been among the foremost experts on this growing trend, leading the way with first-to-market solutions and helping shape standards through its work as a board member for the Trusted Computing Group.