TranSwitch agrees to sell Ilex $2.5 million stock in private placement

Ilex also agrees to surrender warrant for an additional 900,000 shares

By Susanna Moon

Chicago, Aug. 19 - TranSwitch Corp. said it entered into a securities purchase agreement with Ilex Partners, LLC to sell about 9.8 million shares for proceeds of $2.5 million.

In connection with the sale, Ilex agreed to surrender the warrant to purchase common stock it holds in exchange for an additional 900,000 shares or so of the company's common stock, according to a press release.

The company said it also granted Ilex the right to purchase another 9.8 million shares for an additional $2.5 million for a period ending on the earlier of 180 days or one business day prior to the occurrence of a change-of-control event.

Proceeds from these transactions will be used to fund the Company's operations and to meet the company's obligations as they may arise.

The company's shares (Nasdaq: TXCC) closed at $0.34 on Aug. 16.

Ilex Partners is managed by Michael Steinhardt.

Shelton, Conn.-based TranSwitch designs, develops and supplies semiconductor and intellectual property products.

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