Crossroads Systems completes rights offering

Crossroads Systems, Inc. (NASDAQ: CRDS) said it completed a rights offering on July 28, 2015.

The company received subscriptions and oversubscriptions for a total of 4,479,998 shares, representing approximately 39.8 percent of the 11,263,184 shares offered, prior to the application of the NOL Protection Mechanics described in the prospectus.

After application of the NOL Protection Mechanics, a total of 3,933,879 shares were accepted, representing approximately 34.9 percent of the shares offered, for aggregate gross proceeds of USD4,917,349. The subscriptions accepted include purchases by Lone Star Value Investors GP, LLC, the general partner of Lone Star Value Investors, LP, of which Jeffrey E. Eberwein, our Chairman of the board, is the sole manager, and its respective affiliates, for a total of 1,537,907 shares.

The company expects American Stock Transfer & Trust company, LLC, the subscription agent, to begin distributing the shares, the refund checks for any unfulfilled oversubscriptions, and the sale proceeds this week.

Crossroads Systems is a global provider of data storage solutions. Through the innovative use of new technologies, Crossroads delivers customer-driven solutions that enable proactive data security, advanced data archiving, optimized performance and significant cost-savings. Founded in 1996 and headquartered in Austin, TX, Crossroads has been awarded more than 100 patents.