Vuzix Closes Public Offering and Debt Restructuring

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ROCHESTER, N.Y.— Vuzix Corporation (OTCQB: VUZI), a Rochester-based developer and supplier of smart glasses, announced the formal closing of its recent public offering and debt restructuring. Through a public offering of public common stock and warrants, as well as the full exercise of an over-allotment by the company's agent Aegis Capital Corp, with Chardan Capital Markets acting as a financial advisor, Vuzix has raised gross proceeds of approximately $8,050,000, or $6,700,000 after direct offering costs and expenses.

Approximately $2,095,000 of these net proceeds have been used to repay debt consisting of principal and interest on outstanding notes, convertible debentures, and bank loans. Simultaneous with the closing, a total of $3,960,000 in term debt was converted into common shares and warrants, on the same basis of the public offering. Vuzix reports that it now has approximately $4,500,000 in cash, positive stockholders' equity and is virtually debt free with all of the company's assets owned first by its shareholders.

“With this cash we are now executing on the enormous opportunity in front of us in the burgeoning technology revolution of wearable computing and displays,” said Vuzix CEO Paul J. Travers. “At this moment we are gearing up for production of our award-winning M100 smart glasses and our other industry leading wearable tech products through our manufacturing partners. Our distribution channels are already awaiting our shipments and are eager for strong sales demand. We are seeing tremendous interest, particularly in the pro-sumer and enterprise markets with our M100. Our first waveguide based AR monocular for the industrial space, the M2000AR, will shortly be released late this summer and is the first of many new planned products that will take advantage of this new 1.4 mm thin optics technology. We see waveguide technology as a paradigm shift in the available optics technology for wearable displays and one that is needed to finally deliver fashionable smart glasses to the market."