Geoworks Corp. announced that Toshiba Corp. of Japan has made a $5 million direct equity investment in Geoworks. Geoworks issued a total of 1,250,000 common shares to iValue Creation Company of Toshiba Corp. at $4.00 per share. With this new investment, Toshiba now owns a total of 1,459,302 shares of Geoworks common stock, or 6.25% of the company. Geoworks plans to use the proceeds for general corporate purposes, including the ongoing development of its innovative Mobile Server+ platform used by Toshiba's iValue Creation Company in Japan.
The Geoworks Mobile Server+ platform is single software server platform that seamlessly serves the multitude of technologies and platforms in the Japanese Internet market, including iMode, WAP, MML and conventional HTML. Toshiba's iValue Creation is a wireless ASP for the Japanese and Asian market. Launched in April 2000, iValue Creation hosts iMode and wireless services for several companies, including financial service leaders such as Matsui Securities Co., Ltd., Imagawa-Misawaya Securities Co., Ltd. and The Nikko Securities Co., Ltd. More than one million consumers access wireless services through iValue's service.
"We believe Geoworks technology is the best solution for the Japanese market, and want to further strengthen our long-term relationship with Geoworks by increasing our investment in the company," said Tsutumo Kawada, Vice President, Webtop Services Division.
"We are excited to have strategic partners like Toshiba endorse our technology and our approach to the industry," said Dave Grannan, Chief Executive Officer of Geoworks. "As a close business partner of Toshiba's in Japan, we have watched their tremendous success in the iMode and wireless market place, and are honored to have Toshiba's investment support because it further positions Geoworks as a technology leader in the emerging wireless data market."
With contributions by Ellen Jensen, Managing Editor