TranSwitch Corporation (NASDAQ: TXCC), a leading provider of semiconductor solutions for the converging voice, data and video network, today announced that it has filed a prospectus supplement to sell up to an aggregate of $10,000,000 of its common stock (Shares) through an “at-the-market” (ATM) offering. If utilized, the Shares would be offered through MLV & Co. LLC (MLV) as sales agent. MLV, at TranSwitch’s discretion and instruction, will use its commercially reasonable efforts to sell the Shares at market prices from time to time, including sales made directly on The NASDAQ Capital Market. TranSwitch currently intends to use the proceeds from any sales related to the ATM offering for product development, working capital and other general corporate purposes. TranSwitch’s agreement with MLV automatically terminates upon the earlier to occur of the three-year anniversary of the date hereof, or the issuance and sale of all of the Shares (unless earlier terminated pursuant to the terms thereof).
Sales in the ATM offering, if any, would be made pursuant to the prospectus supplement dated February 10, 2012, which supplements the prospectus dated October 21, 2009, filed as part of the effective shelf registration statement that TranSwitch filed with the Securities and Exchange Commission (SEC) on October 21, 2009.
For more complete information about TranSwitch and the ATM offering, you are encouraged to read the prospectus, the prospectus supplement and other documents TranSwitch has filed with the SEC. You may obtain these documents on the SEC’s website at www.sec.gov.
This press release does not constitute an offer to sell or a solicitation of an offer to buy, nor may there be any sale of TranSwitch’s common stock in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any state or jurisdiction.