TranSwitch Corporation TXCC today announced the pricing of an
underwritten public offering of 7,055,000 units at a price to the public of
$0.50 per share. Each unit consists of one share of common stock and a warrant
to purchase 0.50 of a share of common stock. The warrants have an exercise
price of $0.58 per share. The company also granted the underwriter a 45-day
option to acquire an additional 1,245,000 units to cover overallotments in
connection with the offering, which has been exercised in full. After the
underwriting discount and estimated offering expenses payable by the company,
the company expects to receive net proceeds of approximately $3.7 million
(which includes the exercise of the overallotment option). The offering is
expected to close on April 3, 2013, subject to customary closing conditions.
Maxim Group LLC is acting as the sole manager for the offering.
TranSwitch intends to use the net proceeds from the offering for product
development, general corporate purposes and working capital. The units
described above are being offered by TranSwitch Corporation pursuant to a
registration statement previously filed with and subsequently declared
effective by the Securities and Exchange Commission. A prospectus supplement
relating to the offering will be filed with the SEC and will be available on
the SEC's website at http://www.sec.gov.
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