Company sells shares at $2.80 apiece; deal funds product development
By Devika Patel
Knoxville, Tenn., May 20 - TranSwitch Corp. said it sold $17.39 million of common stock in a public offering. The deal priced for $15.12 million with a $2.27 million over-allotment option, which was fully exercised, on May 17.
The company sold 6.21 million common shares at $2.80 apiece. Of the shares, 810,000 were part of the fully exercised greenshoe. The price per share reflects a 15.15% discount to the May 16 closing share price of $3.30.
Needham & Co., LLC was the bookrunner. Northland Capital Markets and Signal Hill were co-managers.
Proceeds will be used for product development, working capital and other general corporate purposes.
TranSwitch is a Shelton, Conn.-based maker of semiconductors used in voice, data and video communications network equipment.
| Issuer: | TranSwitch Corp.
|
| Issue: | Common shares
|
| Amount: | $17,388,000 (including $2,268,000 greenshoe exercise)
|
| Shares: | 6.21 million
|
| Price: | $2.80
|
| Warrants: | No
|
| Managers: | Needham & Co., LLC (bookrunner), Northland Capital Markets and Signal Hill (co-managers)
|
| Pricing date: | May 17
|
| Settlement date: | May 20
|
| Stock symbol: | Nasdaq: TXCC
|
| Stock price: | $3.30 at close May 16
|
| Market capitalization: | $74.51 million
|
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