OCZ Technology Executes Purchase Agreements for $22 Million Private Placement Funding
Accelerates Solid State Drive Product Development Roadmap and Enterprise Growth
SAN JOSE, Calif., Oct 29, 2010 (GlobeNewswire via COMTEX) -- OCZ Technology Group, Inc. (OCZ 3.20, +0.15, +4.92%) , 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. (MERR 2.68, +0.19, +7.63%) 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: http://www.ocztechnology.com.
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