Inventergy Global, Inc. (NasdaqCM:INVT) announced that it has entered into a securities purchase agreement with certain institutional accredited investors for a private placement of up to 2,500 series C convertible preferred stock at a price of $1,000 per share for gross proceeds of $2,500,000 on January 21, 2016. The company will also issue warrants to purchase 1,416,667 shares of common stock exercisable for a term of five years commencing six months after the closing of the transaction at an exercise price of $1.79 per share. The transaction will include participation from existing investors Alpha Capital AG for principal amount of $700,000 and 396,667 warrants and Anson Investments Master Fund LP; a fund managed by existing investor Anson Group for principal amount of $700,000 and 396,667 warrants and new investors Brio Capital Master Fund Ltd.; a fund managed by new investor Brio Capital L.P. for principal amount of $400,000 and 226,667 warrants, Intracoastal Capital LLC for principal amount of $300,000 and 170,000 warrants, and Diamond Rock G3, LLC for principal amount of $400,000 and 226,667 warrants. The preferred shares will be immediately convertible into 1,666,667 shares of the company's common stock, subject to certain beneficial ownership limitations, at an initial fixed conversion price equal to $1.50 per share, subject to adjustment. After July 26, 2016, the conversion price will be equal to the lesser of the conversion price then in effect or 65% of the volume weighted average price of the company's common stock for ten consecutive days prior to the applicable conversion date. The shares will be issued at par. The company may redeem some or all of the shares for cash on or prior to March 26, 2016, in an amount equal to 126% of the aggregate stated value then outstanding, after March 26, 2016 and on or prior to July 26, 2016, in an amount equal to 144% of the aggregate stated value then outstanding, and after July 26, 2016, in an amount equal to 150% of the aggregate stated value then outstanding.

The conversion of the convertible preferred stock is limited to 19.99% of the currently outstanding common stock unless and until the company receives a stockholder vote approving the conversion. The minimum investment accepted from any outside investor is $300,000. The company will issue the securities pursuant to exemption provided under Regulation D. The transaction is expected to close on or about January 26, 2016, subject to satisfaction of customary closing conditions, including the company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the issue of the securities. No brokerage or finder's fees or commissions are or will be payable by the company or any subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other person with respect to the transactions contemplated by the transaction documents. The securities may only be disposed of in compliance with state and federal securities laws.