Deal with investor with Aspire Capital Fund slated to span two years
By Devika Patel
Knoxville, Tenn., July 17 - TranSwitch Corp. negotiated an $11 million two-year common stock purchase agreement with Aspire Capital Fund, LLC on July 16, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The investor will buy company shares at a price based on market prices. The tranches will consist of up to 50,000 common shares per trading day, for up to $500,000.
The price per share will be equal to the lower of the lowest sale price for the stock on the sale date or the arithmetic average of the three lowest closing sale prices for the stock during the 12 consecutive business days immediately preceding the purchase date.
Shelton, Conn.-based TranSwitch designs, develops and supplies semiconductor and intellectual property products.
| Issuer: | TranSwitch Corp.
|
| Issue: | Common stock purchase agreement
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| Amount: | $11 million
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| Tenor: | Two years
|
| Price: | Lower of the lowest sale price for the stock on the sale date or the arithmetic average of the three lowest closing sale prices for the stock during the 12 consecutive business days immediately preceding the purchase date
|
| Warrants: | No
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| Investor: | Aspire Capital Fund, LLC
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| Settlement date: | July 16
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| Stock symbol: | Nasdaq: TXCC
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| Stock price: | $1.07 at close July 13
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| Market capitalization: | $43.3 million
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