Transphorm Announces Closing of $ 23 Million Private Placement of Common Shares with KKR and U.S. Institutional Investors

0

Receive instant alerts for news on your actions. Claim your 1-week free trial for Street Insider Premium here.


– The agreement further strengthens the company’s balance sheet ahead of the strong growth expected in 2022 –

GOLETA, Calif .– (BUSINESS WIRE) – Transphorm, Inc. (OTCQX: TGAN) —a pioneer and global supplier of high reliability, high performance gallium nitride (GaN) power conversion products, announced today hui the closing of a $ 23 million financing through a private placement of 4,600,000 common shares of Transphorm at a price of $ 5.00 per share to KKR Phorm Investors LP (KKR) and several US institutional investors , as well as warrants to purchase a total of 958,334 common shares at an exercise price of $ 6.00 per share. The Company has also granted investors the right to purchase up to an additional 50% of ordinary shares with warrant coverage, on the same terms, within a certain time frame.

As a result of this financing, combined with the recent conversion of $ 15.6 million of debt into common shares of Transphorm by strategic partner Yaskawa Electric Corporation, Transphorm has added more than $ 37 million of positive equity to its balance sheet. , based on fair market value estimates, and continues to pursue plans to increase the listing of its common shares on the Nasdaq.

Eiji Yatagawa, partner of KKR’s overseas subsidiary and member of the board of directors of Transphorm since 2015, said: “KKR is delighted to make an additional investment in Transphorm. The GaN electricity market is at a very exciting inflection point, and Transphorm is positioned to capitalize on the multi-billion dollar market with its strong fundamentals, including its broad product portfolio with superior differentiated technology. Transphorm now has one of the largest IP portfolios in GaN energy and is one of the only GaN energy manufacturers to scale up in both low and high market segments. power. We believe the additional capital increase improves Transphorm’s financial stability and positions the company for future growth.

As previously announced, Transphorm management will host an investor conference call on its second quarter fiscal 2022 results on November 10, 2021. The conference call will be webcast live and available to all interested parties in the section Investor Relations website of Transphorm at www.transphormusa.com.

Dated: Wednesday 10 November 2021

Time: 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time)

Conference call number: 1-888-440-4368

International phone number: + 1-646-960-0856

Conference ID: 8060388

The securities sold under the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”) or the securities laws of any state or other jurisdiction. , and may not be resold absent registration or an exemption from registration under, the Securities Act. Transphorm has agreed to file a registration statement with the Securities and Exchange Commission recording the resale of the common shares issued and sold under the private placement within 30 days of the closing of the private placement.

This press release does not constitute an offer to sell or the solicitation of an offer to buy such securities, and there will be no sale of such securities in any jurisdiction in which such an offer, solicitation or sale would be illegal. before registration or qualification. under the securities laws of such jurisdiction.

Craig-Hallum Capital Group LLC acted as sole placement agent for the private placement of some of the investors.

About Transphorm

Transphorm, Inc., a global leader in the GaN revolution, designs and manufactures high performance, high reliability GaN semiconductors for high voltage power conversion applications. With one of the largest IP Power GaN portfolios of over 1,000 owned or licensed patents, Transphorm produces the first JEDEC and AEC-Q101 qualified high voltage GaN semiconductor devices. The company’s vertically integrated devices business model enables innovation at every stage of development: design, manufacture, device and application support. Transphorm innovations push power electronics beyond the limits of silicon to achieve over 99% efficiency, 40% more power density and 20% less system cost. Transphorm’s patented GaN platform differs from competing solutions in crucial ways for the performance requirements of power conversion applications – from 45 to 150 watt fast chargers / adapters to gaming, data center server and computer power supplies. 1 to 4 kW crypto-mining at industrial power greater than> 4 kW, UPS and automotive converters / inverters applications. Transphorm is one of the few high voltage GaN manufacturers to be vertically integrated, thereby controlling the innovation and advancement of the design of the FET itself, the epitaxial starting material and the manufacturing process.

Transphorm is headquartered in Goleta, California, and has manufacturing facilities in Goleta and Aizu, Japan. For more information, please visit www.transphormusa.com. Follow us on twitter @transphormusa and WeChat @ Transphorm_GaN.

Forward-looking statements

This press release contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as as amended) regarding the Company’s market position, expectations regarding anticipated future growth and upgrade plans on the Nasdaq. Forward-looking statements generally include statements that are predictive in nature and depend on or refer to future events or conditions, and include words such as “may”, “will”, “should”, “should”, “if” wait ”,”, “believe”, “intend to”, “look ahead” and other similar expressions among others. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions which are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement due to various factors, including, without limitation: risks associated with Transphorm’s operations, such as additional financing requirements and access to capital; competetion; the ability of Transphorm to protect its intellectual property rights; and other risks set out in documents filed by the Company with the Securities and Exchange Commission. Except as required by applicable law, the Company assumes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statement, whether as a result of new information, future events or otherwise.

Investor contacts:

Shelton Group

Brett Perry | Leanne Sievers

1-214-272-0070 | 1-949-224-3874

[email protected]

Company details :

Cameron McAulay

Financial director

1-805-456-1300 ext. 140

[email protected]

Source: Transphorm, Inc.

Share.

Comments are closed.