BlackBerry Looks For Alternative Buyers For Legacy Patents After Catapult Fails To Secure Funds
It appears that a significant monetization event for BlackBerry Limited (TSX: BB) may not be proceeding after all. The firm this morning indicated that it has exited an exclusivity period previously entered into with Catapult IP Innovations related to the sale of a portfolio of patents.
The sale, initially announced in late January, was set to see the Delaware-based SPAC Catapult IP acquire all of the non-core patents owned by BlackBerry in a transaction valued at $600 million. Previously referred to as legacy patents, the IP is said to relate to mobile devices, messaging, and wireless networking.
While at the time of announcement it was said that the closing of the arrangement could take up to 210 days due to regulatory approvals required, however the bigger issue appears to be sufficient financing. Catapult is allegedly still looking to secure the required funds to complete the transaction.
As a result of the delay in securing financing, Catapult is allegedly continuing to work to secure the funds needed to close on the assets, however an exclusivity period related to the sale has now expired. As a result, BlackBerry is now looking at alternative options to dispose of the IP, which is said to be conducted “in parallel.”
BlackBerry last traded at $7.62 on the TSX.
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