Semiconductor solutions provider,
), released the pricing of its public offering announced earlier
this week. The company plans to issue 7.6 million new shares of
common stock at $2.90 per share. The stocks will have a face
value of $0.001.
The company also sanctioned a 30-day option to the
underwriters for buying an additional 1.14 million shares in case
of over-allotment. The offering is expected to close on Nov
QuickLogic expects to raise gross proceeds of $22 million from
this public offering. However, excluding underwriting
discounts and presuming that no underwriter exercises the
over-allotment option, net proceeds are estimated at roughly
QuickLogic, the innovator of ultra-low-power Customer Specific
Standard Products (CSSP), intends to use the proceeds to meet
working capital and general corporate requirements. The funds may
also be utilized to cover capital expenditures like investments
in and acquisitions of complementary businesses, partnerships, or
for buying minority stakes in businesses to repay its debts.
During the nine months ended Sep 29, 2013, the company incurred
$1.2 million in capital expenditures for property and
Moreover, the funds may be employed for acquiring or licensing
intellectual property or technologies for QuickLogic's
If this public offering is approved, the company's liquidity
position will improve. Quarterly losses and negative cash flow
from operating activities have weakened its financial position.
As on Sep 30, 2013, the company reported cash and cash
equivalents worth $14.9 million.
QuickLogic currently carries a Zacks Rank #3 (Hold).
Better-placed stocks within the semiconductor sector worth
Mindspeed Technologies, Inc.
Avago Technologies Ltd.
). All these stocks carry a Zacks Rank #2 (Buy).
AVAGO TECHNOLOG (AVGO): Free Stock Analysis
CAVIUM INC (CAVM): Free Stock Analysis Report
MINDSPEED TECH (MSPD): Free Stock Analysis
QUICKLOGIC CORP (QUIK): Get Free Report
To read this article on Zacks.com click here.