6 June 2022
Transphorm receives $16m from existing investors’ exercise of green shoe
Transphorm Inc of Goleta, near Santa Barbara, CA, USA — which designs and manufactures JEDEC- and AEC-Q101-qualified gallium nitride (GaN) field-effect transistors (FETs) for high-voltage power conversion — has received gross proceeds of $16m as a result of the exercise of the ‘green shoe’ (over-allotment option) associated with the firm’s private placement completed in November 2021.
The exercise brings the total proceeds from equity financings since October 2021 to about $61m, before deducting offering expenses. As a result of the exercise, the firm has cash and cash equivalents of more than $45m as of 3 June.
Under the terms of the green shoe exercise, Transphorm issued 3,199,999 shares of its common stock as well as warrants to purchase an aggregate of 666,668 shares of its common stock at an exercise price of $6 per share.
“Over the past three quarters we have completed multiple equity financings from a combination of strategic and institutional investors, resulting in a significant increase in both the company’s cash position and stockholders’ equity,” says chief financial officer Cameron McAulay. “This additional capital provides expanded operational flexibility in support of our current and anticipated future growth.”