Expand seeks new funding after legal row with VC backer
Vendor tells partners it is "business as usual" as it undertakes shake-up of "capital structure"
Expand Networks has stressed it is "very much business as usual" as it seeks new investment, following a falling out with its main venture capital partner.
A report from Israeli news site Globes claims Expand funder Plenus took legal action against the WAN optimisation firm relating to the tardy repayment of a debt.
A statement issued to customers today by the vendor states: "Expand has undergone a change in the company's capital structure and control following a legal process that was initiated by its lead venture lender."
But Expand maintains it remains financially viable.
"This development does not affect the company's financial viability, nor does it detract from our strategy or business activities," adds the statement. "We continue to enjoy the backing and support of our lending partners and this process should allow new strategic investors to join the company."
Expand has offered reassurances that its commitment to resellers and end user customers will remain unstinting. It also points out that the funding change will not affect the planned release this quarter of its Mobile Accelerator Client for Windows product.
"We want to set the record straight to allay any concerns you may have following recent reports and speculation regarding Expand's business operations and financial viability and to emphasise our ongoing commitment to support customers and partners," says the statement.
"Be assured that it is very much business as usual at Expand Networks and, most significantly, in our support and commitment to you as a customer. We continue to innovate and achieve market success and validation with our growing customer base, as well as the ongoing development, support and commitment to our existing customers and partners."