Semiconductor solutions provider
) recently sealed a deal with Michael Steinhardt of Ilex
Partners, LLC to sell approximately 9.8 million shares for $2.5
The private placement will likely offer some relief to the
company. TranSwitch will utilize the funds for general corporate
and working capital purposes. Moreover, TranSwitch is expected to
utilize the funds for the growth of its new video connectivity
business without drawing additional debt.
Furthermore, according to the deal, Ilex Partners will trade
off the warrant to purchase an additional 0.9 million shares of
TranSwitch. TranSwitch has also granted IIex the right to
purchase 9.8 million more shares for an additional $2.5
TranSwitch's poor financial health and its failure to comply
with the listing norms of Nasdaq Capital Market prompted it to
consider a plan of delisting its shares from Nasdaq. The company
does not have the minimum closing bid price and stockholders'
equity requirements for sustained listing on the Nasdaq Capital
The company recently announced its collaboration with Rancore
Technologies, the technology and development arm of Reliance Jio
Infocomm Limited (RJIL), which in turn is a subsidiary of
Reliance Industries Limited (RIL), to support the launch of 4G
Broadband Wireless and Wireline Access (BWA) services in
TranSwitch provides innovative integrated circuit (IC) and
intellectual property (IP) solutions, which help the customer and
network infrastructure segment in delivering core functionality
for video, voice and data communication equipments.
TranSwitch currently carries a Zacks Rank #4 (Sell).
Better-placed stocks in the same industry that are worth
Advanced Semiconductor Engineering Inc.
ARM Holdings plc
). All of these have a Zacks Rank #2 (Buy).
ARM HOLDNGS ADR (ARMH): Free Stock Analysis
ADV SEMICON ADR (ASX): Free Stock Analysis
DIODES INC (DIOD): Free Stock Analysis Report
TRANSWITCH CORP (TXCC): Free Stock Analysis
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