Fonix Corp. acquires 80% of Shanghai Gaozhi Software

Fonix Corp. said Tuesday it has signed an agreement to acquire 80 percent of the common stock of Shanghai Gaozhi Software Systems Ltd., a software developer and services provider in mobile networks in China and throughout the Asian Pacific region.

Salt Lake City-based Fonix said the remaining 20 percent of the Chinese company's stock will be acquired by funds managed by Southridge LLC.

Terms of the purchase agreement include cash, Fonix Series L convertible preferred stock owned by Southridge, Series O convertible preferred stock issued by Fonix, and an unspecified note.