Southborough, Massachusetts - August 8, 2005 -ViryaNet (NasdaqSC: VRYA), a leading provider of integrated mobile and Web-based software applications for workforce management and field service delivery, today announced that it has completed a financing transaction with an existing shareholder, LibertyView Special Opportunities Fund, L.P., which will provide $1.2 million of cash to the Company. LibertyView Special Opportunities Fund, L.P. is managed by Neuberger Berman, LLC, a Lehman Brothers Company.
The transaction includes an equity investment of $0.7 million at a price of $2.10 per Ordinary Share with warrants to purchase up to 116,666 Ordinary Shares at an exercise price of $2.10 per Ordinary Share, and an increase in the amount of the existing $2.5 million convertible loan with LibertyView to $2.98 million. The fixed conversion price for the entire value of the convertible loan has been adjusted to $2.205 per Ordinary Share, and may be converted to Ordinary Shares at the discretion of LibertyView at any time during the term of the loan. The convertible loan bears interest of 7.5%, payable quarterly in cash, and is eight years in duration. The lender has the option to request earlier repayment during fixed time periods beginning in July of 2008.
The Company has agreed to file a registration statement with the SEC covering the Ordinary Shares from the equity investment and related warrants and the resale of the Ordinary Shares, which may be issued upon conversion of the convertible loan in accordance with the fixed conversion price explained above, subject to certain terms and conditions.