Zoom Telephonics Wraps $5M Strategic Investment
Boston -- Zoom Telephonics, Inc. (“Zoom” or “the Company”) (OTCQB: ZMTP), a leading producer of cable modems and other communication products, today announced that it has closed a $5 million private placement at a purchase price of $1.10 per share, with $4.1 million of the strategic investment coming from the family fund of technology leader Jeremy Hitchcock.
Other investors included CEO, Chairman and co-founder Frank Manning, two other members of Zoom’s Board of Directors, and Zoom President Joe Wytanis. The Company intends to utilize the proceeds from the offering to accelerate the roll-out of new products, for working capital, and for other corporate purposes.
Effective on the closing of the offering, Jeremy Hitchcock and Jonathan Seelig will join Zoom’s Board of Directors. Mr. Hitchcock co-founded a remote access company that was sold to Oracle for an undisclosed amount estimated to be approximately $600 million. He is the founder and CEO of Minim, a company noted for its expertise in network management and IoT security. Zoom plans to incorporate Minim network and security technology into certain future cable modem/router and router products, which it believes could provide significant value to end-users and service providers, and recurring downstream revenues to Zoom.
Jonathan Seelig is a co-founder of Akamai, the world’s leading content delivery network and edge service provider. He is currently CEO of Tectonic, a distributor infrastructure company he co-founded.