Fusion buys in to Insignia

Insignia Solutions has entered into an agreement to sell up to $6 million of American Depository Shares to Fusion Capital Fund II.

Insignia Solutions has entered into an agreement to sell up to $6 million of American Depository Shares to Fusion Capital Fund II, a Chicago based institutional investor, over a period of up to 30 months.

The funds will be used for working capital and other general corporate purposes.

Under the securities subscription agreement, funding of the $6 million will occur from time to time after the Securities and Exchange Commission has declared effective a registration statement covering the American Depository Shares to be purchased by Fusion Capital.

The purchase price of the American Depository Shares to be sold to Fusion Capital will be based on the market price of Insignia's shares at the time of sale.

Insignia has the right to control the timing and the amount of stock sold to Fusion Capital.

Details of the transaction will be reported shortly by Insignia on a Form 8-K and in the registration statement to be filed with the Securities and Exchange Commission.

"This capital commitment demonstrates significant confidence in the future of Insignia and its ability to execute on its strategy.

In addition, it provides Insignia with working capital that will help us build our technology offerings, partnerships and distribution channels, and address the timely market opportunity in the mobile services and provisioning markets", commented Richard Noling, CEO of Insignia.

Mark McMillan, Insignia's President, stated, "This financing gives us flexibility and greater financial security, and reinforces Insignia with funding to help it grow its market share and presence in the mobile services market.

We are excited about adding Fusion Capital to our team, as we expect them to be a valuable and long-term financial and business partner".

Insignia provides essential ingredients to device manufacturers and operators to enable them to capitalise on the mobile services opportunity through the use of Java technology enabling and system level provisioning products.

"Insignia's technology leadership is shaping the future development and direction of the mobile wireless markets", said Steven G Martin of Fusion Capital.

"This financing arrangement will support Insignia in its mission to further penetrate the expanding mobile services industry".

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