OCZ Technology Executes Purchase Agreements for $22 Million Private Placement
30 October 2010 - 12:23AM
OCZ Technology Group, Inc. (Nasdaq:OCZ), a leading provider of
high-performance solid-state drives (SSDs) and memory modules for
computing devices and systems, has signed definitive agreements
with various institutional and accredited investors for the private
placement of approximately $22 million of its common stock and
warrants to support its fast growing solid state drive (SSD)
business.
In the transaction, OCZ agreed to sell approximately 7.2 million
shares of its common stock at approximately $3.08, along with
warrants to purchase 1.8 million additional shares at $5.25 per
share. The Company agreed to file a registration statement with the
Securities and Exchange Commission, registering the resale of these
shares and the shares underlying the warrants following the close
of the transaction.
"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," said
Ryan Petersen, President and Chief Executive Officer of OCZ
Technology Group. "This new funding will accelerate our
technology development and expand our Enterprise and OEM SSD
solution portfolio."
Mr. Petersen further commented, "We are pleased that OCZ has
received commitments to raise $22 million of growth capital from
such an esteemed group of investors. And, to do so at an 'at
market' price, is not only gratifying but reflective of the
opportunities for OCZ and its shareholders."
Mr. Petersen concluded, " 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."
Merriman Capital, Inc., a wholly-owned subsidiary of Merriman
Holdings, Inc. (Nasdaq:MERR) acted as the exclusive placement agent
for the transaction.
About OCZ Technology Group, Inc.
Founded in 2002, San Jose, CA-based OCZ Technology Group, Inc.
("OCZ"), is a leader in the design, manufacturing, and distribution
of high performance and reliable Solid State Drives (SSDs) and
premium computer components. OCZ has built on its expertise in
high-speed memory to become a leader in the SSD market, a
technology that competes with traditional rotating magnetic hard
disk drives (HDDs). SSDs are faster, more reliable, generate less
heat and use significantly less power than the HDDs used in the
majority of computers today. In addition to SSD technology, OCZ
also offers high performance components for computing devices and
systems, including enterprise-class power management products as
well leading-edge computer gaming solutions. For more information,
please visit: www.ocztechnology.com.
The OCZ Technology Group, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7439
Forward-Looking Statements
Certain statements in this release relate to future events and
expectations and as such constitute forward-looking statements
involving known and unknown factors that may cause actual results
of OCZ Technology Group, Inc. to be different from those expressed
or implied in the forward-looking statements. In this context,
words such as "will," "would," "expect," "anticipate," "should" or
other similar words and phrases often identify forward-looking
statements made on behalf of OCZ. It is important to note that
actual results of OCZ may differ materially from those described or
implied in such forward-looking statements based on a number of
factors and uncertainties, including, but not limited to, market
acceptance of OCZ's products and OCZ's ability to continually
develop enhanced products; adverse changes both in the general
macro-economic environment as well as in the industries OCZ serves,
including computer manufacturing, traditional and online retailers,
information storage, internet search and content providers and
computer system integrators; OCZ's ability to efficiently manage
material and inventory, including integrated circuit chip costs and
freight costs; and OCZ's ability to generate cash from operations,
secure external funding for its operations and manage its liquidity
needs. Other general economic, business and financing conditions
and factors are described in more detail in "Item 1A - Risk
Factors" in Part II in OCZ's Annual Report on Form 10-K filed with
the SEC on May 20, 2010. The filing is available both at
www.sec.gov as well as via OCZ's website at www.ocztechnology.com.
OCZ does not undertake to update its forward-looking
statements.
CONTACT: OCZ Technology Group, Inc.
Ryan Petersen, CEO
408-733-8400
The Investor Relations Group
Investor Relations:
Adam Holdsworth
Public Relations:
Mike Graff
212-825-3210