NeoMagic(R) Corporation Announces Financing
December 01 2006 - 8:30AM
PR Newswire (US)
SANTA CLARA, Calif., Dec. 1 /PRNewswire-FirstCall/ -- NeoMagic
Corporation (NASDAQ:NMGC), today announced an $11.45 million
offering at an offering price of $4.58 per security pursuant to its
shelf registration in which it will issue 2,500,000 shares of
common stock and warrants to purchase 1,250,000 shares of common
stock at an exercise price of $5.20 per share. The five-year
warrants will not be exercisable prior to at least the first six
months after issuance. The warrants will include anti-dilution
provisions that would have the effect of lowering the applicable
exercise price if NeoMagic issues equity at prices below the
exercise price, subject to a specified floor of $4.58. The
financing is expected to close on or about December 6, 2006,
subject to the satisfaction of customary closing conditions.
NeoMagic intends to use the net proceeds from this financing
transaction for working capital and general corporate purposes.
A.G. Edwards acted as exclusive placement agent in connection with
this financing transaction. A registration statement relating to
these securities was filed with and has been declared effective by
the Securities and Exchange Commission. This press release shall
not constitute an offer to sell or the solicitation of an offer to
buy nor shall there be any sale of these securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful. About NeoMagic NeoMagic Corporation delivers
semiconductor chips and software that provide mobile solutions that
enable new multimedia features for handheld devices. These
solutions offer low power consumption, small form-factor and high
performance processing. NeoMagic demonstrated one of the first
solutions used for H.264 video decoding in a mobile digital TV
phone, and is developing and delivering solutions for audio/video
processing of the dominant mobile digital TV standards, including
ISDB-T, T-DMB, E-DMB and DVB-H. For its complete system solution,
NeoMagic delivers a suite of middleware and sample applications for
imaging, video and audio functionality, and provides multiple
operating system ports with customized drivers for the MiMagic
product family. NeoMagic has a patent portfolio of over 25 patents
that cover NeoMagic's proprietary array processing technology,
embedded DRAM and other technology. Information on the Company may
be found on the World Wide Web at http://www.neomagic.com/. This
press release contains forward-looking statements within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
reflect current expectations and include statements relating to
whether or not NeoMagic will consummate the financing and the
anticipated use of proceeds. However, actual events and results
could vary significantly based on a variety of factors. Some, but
not all, of these risks and uncertainties are discussed in
NeoMagic's most recent annual report, its most recent quarterly
report and other filings with the United States Securities and
Exchange Commission (SEC), and are available online at
http://www.sec.gov/. NeoMagic may, from time to time, make
additional written or oral forward-looking statements, including
statements contained in filings with the SEC and reports to
shareholders. In addition, the forward-looking statements in this
press release involve risks and uncertainties specific to the
nature of the financing, including, but not limited to,
unanticipated changes in the securities market and competitive
conditions. NeoMagic does not undertake the obligation to update
any forward-looking statements that may be made by or on behalf of
the company, except as may be required by law. NeoMagic and the
NeoMagic circle logo are registered trademarks, and MiMagic and
NeoMobileTV are trademarks, of NeoMagic Corporation. All other
trademarks are the property of their respective owners. NeoMagic
disclaims any proprietary interest in the marks and names of
others. (Logo:
http://www.newscom.com/cgi-bin/prnh/20020802/NMGCLOGO
http://www.newscom.com/cgi-bin/prnh/20020802/NMGCLOGO
http://photoarchive.ap.org/ DATASOURCE: NeoMagic Corporation
CONTACT: Scott Sullinger, Chief Financial Officer of NeoMagic
Corporation, +1-408-988-7020; or Erica Mannion of Sapphire Investor
Relations, LLC, +1-212-766-1800, Investor Relations for NeoMagic
Corporation Web site: http://www.neomagic.com/
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