$10.2 Million Series A Preferred Stock Financing for Finjan Holdings

The financing, which closed May 20, 2016, consisted of 102,000 shares of the company’s Series A Preferred Stock at a purchase price of $100.00 per share, for aggregate proceeds of $10.2 million. The Series A Preferred Stock contains certain optional and mandatory redemptive provisions, does not accrue an annual cash dividend, and carries participation rights in certain of the company’s revenue streams until securities are retired.

“This non-convertible Series A financing is our first capital raise since becoming public and offers confidence in the foundation of Finjan’s historical results and the promising future ahead,” said Phil Hartstein, President and CEO of Finjan Holdings. “The investment flows directly onto our balance sheet and ensures we continue to operate our business and pursue licensing and enforcement efforts at a vigorous pace.”

B. Riley’s banking team consisted of Salomon Kamalodine, managing director of investment banking and analyst Erik Bullock. The team was assisted by Michael Guzman, senior managing director of corporate and venture services.

“This financing underscores the strength of Finjan’s battle-tested cybersecurity IP and positions the company to capitalize on the momentum gained from multiple favorable legal developments over the past 24 months,” said Salomon Kamalodine, managing director of B. Riley’s investment banking practice. “Additionally, the funding places Finjan on a stronger footing to pursue its growing licensing pipeline.”

This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.