BlackBerry Ltd BB is trading lower Monday after the company announced it agreed to sell its legacy patents for $600 million.
BlackBerry entered into the patent sale agreement with Catapult IP Innovation Inc. The company agreed to sell substantially all of its non-core patent assets to Catapult IP Innovation. Patents that are essential to BlackBerry’s current core business operations will be excluded from the transaction.
Completion of the transaction could take up to 210 days. At closing, BlackBerry will receive $450 million in cash and a promissory note in the principal amount of $150 million.
Once known for being the world's largest smartphone manufacturer, BlackBerry is now a software provider offering end-to-end secure communication for enterprises.
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BB Price Action: BlackBerry has traded as low as $7.44 and as high as $22.50 over a 52-week period.
The stock was down 6.35% at $7.38 at time of publication.
Photo: courtesy of BlackBerry.
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