TranSwitch Pops 25% After Stock Purchase Agreement
Shares of TranSwitch (NASDAQ: TXCC) were seeing increased strength during Tuesday's trading session after the company announced a deal with Aspire Capital Fund.
TranSwitch announced that it has entered into a common stock purchase agreement with Aspire Capital Fund, LLC, an Illinois limited liability company. Aspire Capital has committed to purchase up to $11 million of TranSwitch's common stock over the next two years at prices based on the market price at the time of each sale.
On execution of the agreement, Aspire Capital made an initial purchase of 990,099 shares of common stock for $1,000,000, which was approximately a 5% discount to Friday's closing price of $1.07.
TranSwitch will control the timing and amount of any sale of common stock to Aspire Capital and will know the sale price before directing Aspire Capital to purchase shares. Aspire Capital has no right to require any sales by the Company, but is obligated to make purchases as the Company directs, in accordance with the terms of the Purchase Agreement.
Tuesday, shares of TranSwitch were trading up over 17 percent, at about $1.32 per share.
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