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Strategic Considerations of Our Recent Secondary Offering

Earlier today we filed an 8-K with the SEC announcing the completion of a secondary public offering. As is noted in the filing, the net proceeds from the offering, after deducting the underwriting discounts and commissions and estimated offering expenses, and exclusive of any funds raised in the future via the cash exercise of warrants, are expected to be approximately $14.0 million. We believe this funding will help us build on the success and leverage the momentum I outlined during our May 9th conference call.

With large brand-name OEMs launching new products using our unique and innovative solutions, we are benefiting from increased visibility with other large OEMs and internet platform companies. Due to this and other strategic considerations, we determined the best way for us to leverage our position would be to strengthen our balance sheet now.

The strategic benefits of increasing our cash include:

  • It gives our current customers security that we are well positioned to support their planned production with inventory and technical resources.
  • It gives us more flexibility with our suppliers as we negotiate orders and scheduling for the inventory we will need to support scheduled and anticipated new product launches by our customers.
  • It enables us to focus our discussions with large OEMs that have not yet committed to using our platforms and IP on the merits of our solutions without having to deal with questions regarding our financial resources.
  • It enables us to continue funding for our strategic product and IP roadmaps.

As I noted in our May 9th conference call, I am very enthusiastic and optimistic regarding the depth and breadth of our funnel and believe this is an exciting time for QuickLogic as we build our reputation as a recognized and valued supplier in our targeted markets.

15 thoughts on “Strategic Considerations of Our Recent Secondary Offering

  1. Brain we heard this story before. A year ago need to raise money to improve and our revenues will go up. Instead the revenues went down. Stop with the crap either get it going or sell the company. I am not sure you can do the job. Watch the lawsuits coming soon.

  2. May 9th would have been a great time to have discussed your strategic plan to dilute shareholder value and make your case known to the investor. Legal or illegal you basically pulled off a great pump and dump leading us to believe strong growth was on the horrizon, there was plenty of cash to meet your current burn rate. If you were confident in the growth there would be zero reason to raise capital at this point, why dilute at a 26% discount on a 52 week low when you could wait another quarter or two and dilute if necessary on the huge breakout momentum you claim is just around the corner. Smells really really bad

  3. Brian, thanks for your blog post. Given your enthusiasm I was wondering if you participated in the latest offering. Do you have any color on that?

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