Merriman Capital brokers deal, which will include 1.8 million warrants
By Devika Patel
Knoxville, Tenn., Oct. 29 - OCZ Technology Group, Inc. said it will sell common shares in a private placement to raise about $22 million.
The company will sell 7.2 million common shares at about $3.08 apiece. The price per share reflects a 0.98% premium to the Oct. 28 closing share price of $3.05.
Investors also will receive warrants for 1.8 million shares, which are exercisable at $5.25. The strike price is a 41.91% premium to the Oct. 28 closing price.
Merriman Capital, Inc. is the agent.
"OCZ continues to experience rapid growth globally in multiple markets with the introduction of innovative solid state products that change the very way clients architect their systems," president and chief executive officer Ryan Petersen said in a press release. "This new funding will accelerate our technology development and expand our Enterprise and OEM SSD solution portfolio.
"We are pleased that OCZ has received commitments to raise $22 million of growth capital from such an esteemed group of investors," Petersen added. "And, to do so at an 'at market' price, is not only gratifying but reflective of the opportunities for OCZ and its shareholders.
"With the funding, OCZ will be in a financial position to more than double its SSD revenues over the next year, increase its gross product margins, and support future enterprise OEM opportunities," Petersen concluded.
OCZ is a Sunnyvale, Calif.-based producer of computer memory and components.
| Issuer: | OCZ Technology Group, Inc.
|
| Issue: | Common stock
|
| Amount: | $22 million
|
| Shares: | 7.2 million
|
| Price: | $3.08
|
| Warrants: | For 1.8 million shares
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| Warrant strike price: | $5.25
|
| Agent: | Merriman Capital, Inc.
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| Pricing date: | Oct. 29
|
| Stock symbol: | Nasdaq: OCZ
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| Stock price: | $3.05 at close Oct. 28
|
| Market capitalization: | $86.96 million
|
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