Why VirnetX Holding Corporation Stock Plunged Today
Shares of VirnetX Holding Corporation (NYSEMKT: VHC) were down 14% as of 3:15 p.m. EDT Monday after the patent-litigation and software-technology company disclosed additional delays with its stock-purchase agreement with a Japanese investor.
VirnetX initially announced a five-year strategic alliance early last month with Japanese private equity and strategic consulting group Public Intelligence Technology Associates KK (PITA). The alliance included a revenue-share agreement on all sales of VirnetX's Gabriel Collaboration Suite and other Gabriel products sold in Japan, as well as an agreement by PITA to purchase $20 million of shares in VirnetX common stock at $3.64 per share no later than June 19, 2017.
At the time, VirnetX CEO Kendall Larsen lauded the alliance as "a massive opportunity for Gabriel to be the leading provider of secure communications to the Japanese market." Larsen also stated the revenue-sharing agreement had the "potential to be very profitable for the company and our shareholders."
Source: Fool.com
