Marathon Patent Group (MARA +5.8%) has acquired two companies with "active patent portfolios," and revenue rights for three additional portfolios. The company is paying with $5M in cash, up to $6M in deferred cash payments, and 391K restricted shares of convertible stock, as well as potential earn-out payments.
To help pay for the purchases, Marathon has raised $6.5M in financing through the sale of units featuring one share of preferred stock convertible into common stock at a price of $6.50, and a two-year warrant to buy 0.25 shares of common stock at an exercise price of $7.50.
Marathon has also acquired from IP monetization service firm IPNav the rights to "license and sell a commercial version of a proprietary IP analytics system developed for IPNav." The company plans to launch a commercial version of the product in late 2014.
Finally, Marathon has "entered into a multi-year agreement with IPNav to provided strategic advisory services on IP assets owned by Marathon." The deal gives Marathon "the right to acquire IP assets that meet certain criteria that would otherwise be acquired by other clients of IPNav and the right to participate in any IP-related financing undertaken by IPNav Capital."