Semiconductor-based components and satellite solar panel developer Emcore Corp has priced an underwritten public offering of 2.5 million shares of common stock at US$4.30 per share to raise US$10.75m.
Net proceeds from the offering, expected to be…
Semiconductor-based components and satellite solar panel developer Emcore Corp has priced an underwritten public offering of 2.5 million shares of common stock at US$4.30 per share to raise US$10.75m.
Net proceeds from the offering, expected to be around US$10.2m, will be used for general corporate purposes, including research and development, capital expenditures and potential acquisitions.
B. Riley & Co. is acting as sole underwriter on the issuance and has a 30-day over allotment option to purchase up to 375,000 additional shares of common stock.
Emcore’s authorized capital stock consists of 50 million shares of common stock and 5.9 million shares of preferred stock. As of 11 September 2013, the company had just over 27.12 million shares of common stock issued and outstanding and no shares of preferred stock issued or outstanding.
The move comes after Emcore reported an 18.5% year-on-year decrease in its third quarter results. The US$33.5m generated in Q3 2013 was also 20.8% down on the preceding quarter. The decline occurred in both its fibre optics segment, down 16.5%, and its photovoltaics business, down 21.8%.
In June 2013, Emcore Corp agreed to sell its minority stake in Suncore Photovoltaic Technology to majority shareholder San’An Optoelectronics of China for US$4.8m.
Both the sale and the current share offering are to help fund Emcore’s ongoing realignment strategy of focusing on its core businesses in order to boost profitability. As part of that strategy, the company had considered separating its space photovoltaics and fibre optics businesses.