Hale Capital Partners: FalconStor Software, Inc. (NASDAQ:FALC) recently entered into a purchase agreement with Hale Capital Partners in terms of which, the latter acquired 900,000 shares of the company for a price of $10 a piece. Hale Capital Partners owns 7.3 million shares of FalconStor Software, which represents 13.2% of the company at a value of $10.5 million.
For the second quarter of the year, FalconStor Software reported a decline in its total revenues by 15% on the year to $14 million, against an amount of $16.5 million of revenues in the second quarter of 2012. The net loss of the company, however, narrowed to $5.2 million, or $0.11 per share, versus $6.6 million reported for the same period of last year.
Under the Certificate of Designations, Hale Capital Partners, as a holder of Preferred shares, will receive dividends at a prime rate plus 5% with the maximum amount raising to 10%, Hale Capital said in the filing.