Could Be An Excellent Time To Pick Up ParkerVision

Brickell Key Investments, Inc. exercises option, gives $2 million in additional funds to ParkerVision

On May 31, 2016, ParkerVision, Inc. (NASDAQ:PRKR) issued a press release announcing that Brickell Key Investments LP ("BKI"), a special purpose fund under the management of Juridica Asset Management Limited, a Guernsey-based asset manager has provided $2 million in additional funding to PRKR. BKI reportedly did so by exercising its option under the agreement signed on February. 26, 2016 between the two companies.

ParkerVision agreed that it will trade out BKI's current warrant, through which BKI has the ability to purchase up to 250,000 of PRKR's common stock for $3.50 per share, for a new warrant. Under the new warrant, Brickell will be able to purchase up to 350,000 shares of PRKR's common stock at a price of $2.00 per share.

These large number of warrants are now very valuable for the guys and gals at BKI and Juridica if Parkervision is successful in their lawsuit against Apple (NASDAQ:AAPL) and Qualcomm (NASDAQ:QCOM), et al., especially after the huge price reduction from $3.50 to a measly $2.00. PRKR currently trades at $3.50!

The total amount of funding provided by BKI to PRKR to date now stands at $13 million. Much of that amount is restricted, meaning that ParkerVision must spend it only on its patent enforcement actions. The balance can be used by PRKR for its operating expenses.

Patent litigation

As we noted in our previous review of ParkerVision on May 19, 2016, ParkerVision is involved in ongoing patent litigation against Qualcomm, Apple, LG and Samsung. The complaint filed with the United States International Trade Commission hopefully will be resolved later this summer. PRKR and the respondents jointly agreed to a revised procedural schedule for the matter, and the hearings are now set to start on August. 24, 2016, and conclude on September 1, 2016. If ParkerVision with the help of their law firm of Mintz Levin and the folks at Juridica are successful at the hearings or at trial, the stock stands to experience significant growth through the monetization of its patents.

Conclusion: Further Reason To Buy Now

We continue to strongly suggest aggressive investors consider purchasing a modest amount of shares of ParkerVision. Brickell Key Investments continues to demonstrate its strong belief in the likelihood of PRKR's success in its patent litigation with BKI's additional provision of $2 million in funds.

Under the terms of the agreement, BKI has agreed that PRKR will repay its obligations through its future enforcement of its patents. This demonstrates that BKI believes that ParkerVision could possibly prevail because they have now provided a total of $13,000,000.00. This is a very meaningful amount for this micro cap company.

The PRKR stock is priced very low and has a large potential upside.

Jon Hickman of Ladenberg Thalman who has been following the stock for many years, has a Buy rating on PRKR with a price target of $18.50.

This stock trade is speculative because the upside depends largely on the outcome of PRKR's legal action against several large technology companies with very deep pockets, so speculative investors may only want to take a modest position and must do their own due diligence.