Tioga Technologies (Nasdaq:TIGA) is planning to raise up to $15 million from institutional investors,
reports. The company's valuation for the purposes of the placement will apparently be $73 million, compared with its closing market cap yesterday of $83 million.
A source close to the company said yesterday that in the next couple of weeks, Tioga will be making two announcements no less important than its announcement of technological cooperation with
(Nasdaq:CSCO). Investors cheered at the news that the two companies will be codeveloping a chip and sent Tioga stock up 100% over the two days following the announcement.
Tioga today has $24 million cash, but apparently needs more. Its cash burn rate is high because of intensive R&D activity, which has led it to report heavy net losses. In the third quarter of 2000, Tioga lost a net $15 million.
The company refused to comment specifically, saying only that Tioga was examining several options.