MathStar announces pricing and effectiveness of IPO
OCTOBER 27--MathStar (Minnetonka, MN;www.mathstar.com), which designs, develops, and markets a new class of semiconductor integrated circuit, or chip, it calls field programmable object arrays, has announced that its initial public offering (IPO) of 4,000,000 shares of common stock was priced at $6.00 per share. MathStar has granted to the underwriters a 45-day option to purchase up to an additional 600,000 shares of common stock to cover overallotments, if any. Feltl and Company served as the underwriter of the offering.
Net proceeds from the offering are expected to be approximately $21.1 million and $24.4 million if the underwriters exercise their overallotment option in full, after deducting the underwriting discounts and commissions, the nonaccountable expense allowance and the estimated offering expenses. The net proceeds from the offering will be used to fund research and development, expand MathStar's sales force and marketing efforts, pay its 8% convertible promissory notes, pay a short-term loan, and as general working capital.
The common stock offering may be made only by means of a prospectus, copies of which may be obtained by contacting Feltl and Company, 225 South Sixth Street, 42nd Floor, Minneapolis, MN 55402.
A registration statement relating to these securities was declared effective by the US Securities and Exchange Commission on October 26, 2005.