Today we announced the pricing of an oversubscribed underwritten registered public offering of common stock that is expected to raise a total of approximately $8.75 million in gross proceeds, before deducting the underwriting discount and other estimated offering expenses. The proceeds will be used for several purposes, including the development of next generation new products, including AI and open source hardware/software, and general corporate purposes.
The press release for this announcement can be found on our website here.
I wanted to use this post to share some additional comments around why we made this offering and what it means for our company and shareholders.
As I mentioned in the May 11 earnings call, COVID-19 related impacts are expected to reduce fiscal 2020 revenue by approximately 20% from our expectations when we talked in February. While we are doing everything we can to reach profitability as soon as possible, those impacts have caused us to adjust our prior thinking about not needing to access the capital markets this year.
With our stock price having mostly recovered from its March low price earlier this week, we viewed the current market as an opportunity to strengthen our balance sheet to support our new product plans and growth objectives.
As part of our new product initiatives, on Tuesday of this week, we announced a significant development with respect to the QuickLogic Open Reconfigurable Computing Initiative (QORC) I have spoken about at a high level in recent months. The initiative, developed by QuickLogic in collaboration with Antmicro and Google, broadens access to our company’s FPGA technology and eFPGA IP for embedded systems developers. This is the type of program our stronger balance sheet will benefit from as we look to penetrate and support new markets, and gain what we expect will be hundreds more customers than we have today.
I look forward to discussing many of the new programs we are working on as they are introduced over the coming months.
Finally, I want to reiterate that as of today our outlook for 2020 has not changed. We are still forecasting revenue to increase during the second half of the fiscal year.
I want to close by thanking all of our customers, partners, shareholders, and employees for their continued support of QuickLogic.