Shares of Vringo, Inc.(AMEX:VRNG) gapped down this morning and fell 13% in the opening session. However, today’s retreat shouldn’t be surprised as the stock had soared all the way from $3.11 to $5.55 (all time high), a gain 78% in tow trading sessions. The latest rally was driven as a Judge completely denied Google Inc(NASDAQ:GOOG)’s request to issue any summary about then onoing patent, which is estimate to be valued at $700 million.
The company this morning announced that it has entered into subscription agreements for the sale of 10,344,998 shares of its common stock in a registered direct offering at a price of $4.35 per share, for gross proceeds of approximately $45 million.
Will VRNG Hit $10 Before The case Date? Find Out here
In a global patent war taking place, Vringo (VRNG) received four out of six positive construction Markman rulings in its cases against tech giants’ viz. a viz. Aol (AOL), Google (GOOG), and Target Corp (TGT). The company won these four patents in June 2012.
However, in the present scenario, Google Inc. was over-ruled of its request for a summary judgement by the judge in the court room today. The judge further pronounced an order wherein all the parties should make a conscious effort for a mutual settlement in front of the United States magistrate, Judge Lawrence R. Leonard at 10:30am, Tuesday October 9, 2012. The parties are expected to meet on October 5th also with relevance to some other talks.
The stocks of the company went up and returned to the investors as much as 39% alone after the court hearing that occurred on Wednesday. It further appears that the stock is likely to be a flagship breakout on the charts following the Bear Raid down through $3.00 last Thursday – Friday. A trial or an out of court settlement are the obvious alternative steps in the near future. However, as anticipated, Google might not risk a huge judgement against them.