Crossroads Systems Announces Terms for Rights Offering

Crossroads Systems, Inc. CRDS today announced that a Special Committee of its Board of Directors has set terms for the previously disclosed rights offering of common stock to holders of shares of its common and preferred stock and changed the record date from July 2, 2015 to July 6, 2015. Under the terms of the rights offering, the Company will distribute to its common and preferred stockholders as of 5:00 p.m. Eastern Time on July 6, 2015, the record date, one subscription right for each share of the Company's common or preferred stock owned. Each subscription right will entitle the holder to purchase 0.50 shares of common stock at the subscription price of $1.25 per share. The Company expects to issue an aggregate of 11,219,801 shares of common stock, assuming the rights offering is fully subscribed. The Company also announced that the subscription period will expire at 5:00 p.m. Eastern Time on July 28, 2015, unless extended. The rights offering will also include an over-subscription privilege, which will entitle each rights holder that exercises its full basic subscription rights to purchase additional shares of common stock that remain unsubscribed at the expiration of the rights offering, subject to certain limitations. This press release 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 in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state. The Company has filed with the Securities and Exchange Commission a registration statement on Form S-1 covering the transaction and the distribution of rights and commencement of the rights offering is expected to occur promptly following the effectiveness of that registration statement.