Thursday, January 2, 2014

Thoughts on MARA S-1 Filing

Marathon Patent Group filed a S-1 on 12/31 for six million dollars.

Obviously the SEC needs to approve the registration before any cash can be raised.  I don't expect any raise in the near term future.  So why the filing?

- I believe the company is taking the proper and preliminary steps to acquire additional IP.  Not every patent seller is going to be willing to take common stock as payment for their patents.  Further, Marathon doesn't want to issue common stock in exchange for all patent acquisitions and not every seller is Erich Spangenberg who has taken a very large equity stake in Marathon.

- There is a large amount of high quality IP that has come onto the market very recently and will continue to do so due to the Goodlatte Bill.  There are also an increasing number of buyers that are able to acquire the IP as many new entities have formed and there will be more formed in 2014.  When the company recognizes there is a significant opportunity, they need to act in a timely manner.

- No one likes to be diluted but MARA management continues to prove that they have the best interests for shareholders as they are the largest shareholders.  Any deal that will be consummated, they will believe will create value for the company in the long run.


  1. totally agree ... IR is telling me that the number of suits in play will probably double by Q1 (March). They are presenting at the Noble Microconference on 1/21, and hopefully Doug Croxall will host a conference call for investors shortly thereafter.


    MARA just withdrew their registration. Wrote to IR about it (I was suspicious of the news being "dumped" at 6:00 p.m. on a Friday.) To the contrary, I was told by Bob Prag that this was a pro-shareholder move as the recent lack of volume and interest was probably due to the overhang issue the 12/31 registration potentially represented.