Merriman Capital brokers deal, which will include 1.8 million warrants
By Devika Patel
Knoxville, Tenn., Nov. 4 - OCZ Technology Group, Inc. completed a private placement of common shares on Nov. 2, according to an 8-K filed Thursday with the Securities and Exchange Commission. The deal priced Oct. 29.
The company sold 7,139,960 common shares at $3.08125 apiece for $22 million. The price per share reflects a 1.03% premium to the Oct. 28 closing share price of $3.05.
Investors also received warrants for 1,784,996 shares, which are exercisable at $5.25 until Nov. 2, 2015. The strike price is a 41.91% premium to the Oct. 28 closing price.
Merriman Capital, Inc. was 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 at pricing. "This new funding will accelerate our technology development and expand our Enterprise and OEM SSD solution portfolio.
"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."
OCZ is a Sunnyvale, Calif.-based producer of computer memory and components.
| Issuer: | OCZ Technology Group, Inc.
|
| Issue: | Common stock
|
| Amount: | $22 million
|
| Shares: | 7,139,960
|
| Price: | $3.08125
|
| Warrants: | For 1,784,996 shares
|
| Warrant expiration: | Nov. 2, 2015
|
| Warrant strike price: | $5.25
|
| Agent: | Merriman Capital, Inc.
|
| Pricing date: | Oct. 29
|
| Settlement date: | Nov. 2
|
| Stock symbol: | Nasdaq: OCZ
|
| Stock price: | $4.07 at close Nov. 4
|
| Market capitalization: | $108.56 million
|
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