Investors in placement are Tallwood Venture Capital and Alcatel-Lucent
By Devika Patel
Knoxville, Tenn., Sept. 29 – Ikanos Communications, Inc. said it plans to raise $16.25 million through a private placement of stock and about $59.41 million in a rights offering. Tallwood will invest $11.25 million and Alcatel will invest $5 million in the private sale.
In the placement, the company will sell common shares at $0.41 per share to Tallwood Venture Capital and Alcatel-Lucent. The price per share is a 17.14% premium to the Sept. 26 closing share price.
In the rights offering, the company will sell about 144.9 million shares at the same price as those sold in the placement. Tallwood may invest up to $11.25 million in the rights offering.
In addition, Alcatel-Lucent has committed to loan the company up to $10 million.
Proceeds will be used for working capital and general corporate purposes and for capital expenditures.
Ikanos is based in Fremont, Calif. It makes semiconductors and integrated firmware for the digital home.
| Issuer: | Ikanos Communications, Inc.
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| Issue: | Common stock
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| Amount: | $75.65 million (approximate)
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| Price: | $0.41
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| Warrants: | No
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| Investors: | Tallwood Venture Capital (for $22.5 million) and Alcatel-Lucent (for $5 million)
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| Pricing date: | Sept. 29
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| Stock symbol: | Nasdaq: IKAN
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| Stock price: | $0.35 at close Sept. 26
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| Market capitalization: | $37.58 million
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| Placement
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| Amount: | $16.25 million
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| Rights offering
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| Amount: | $59.41 million (approximate)
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| Shares: | 144.9 million (approximate)
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