Manager Maxim helps fund product development and working capital
By Devika Patel
Knoxville, Tenn., April 3 - TranSwitch Corp. said the underwriter for its public offering of units opted to exercise the deal's $622,500 greenshoe in full for total proceeds of $4.15 million. The offering was announced on March 27 and priced for $3.53 million with a $622,500 greenshoe on March 28.
The company sold 8.3 million units of one common share and a half-share warrant at $0.50 per unit. Of the units, 1,245,000 were part of the fully exercised greenshoe.
Each whole warrant is exercisable at $0.58 for five years. The strike price is a 9.43% premium to the March 27 closing share price of $0.53.
Maxim Group LLC was the manager.
Proceeds will be used for product development, working capital and other general corporate purposes.
Shelton, Conn.-based TranSwitch designs, develops and supplies semiconductor and intellectual property products.
| Issuer: | TranSwitch Corp.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | $4.15 million (including $622,500 greenshoe)
|
| Units: | 8.3 million
|
| Price: | $0.50
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.58
|
| Manager: | Maxim Group LLC
|
| Announcement date: | March 27
|
| Pricing date: | March 28
|
| Settlement date: | April 3
|
| Stock symbol: | Nasdaq: TXCC
|
| Stock price: | $0.53 at close March 27
|
| Market capitalization: | $16.55 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
