SAN JOSE, Calif., Oct. 22, 2020 /PRNewswire/ -- Pixelworks,
Inc. (NASDAQ: PXLW) (the "Company"), a leading provider of
innovative video and display processing solutions, today announced
that on October 19, 2020 it entered into a Securities Purchase
Agreement with MTM-Xinhe Investment Limited, a consortium of
strategic investors from the Chinese semiconductor and mobile
eco-system, pursuant to which Pixelworks would issue and sell in a
private placement 3,200,000 shares of its common stock,
representing approximately 7% of Pixelworks' outstanding shares, in
exchange for approximately $6.6 million
dollars. The transaction is expected to close in November of
2020.
As a shareholder of Pixelworks, MTM-Xinhe Investment Limited
intends to leverage its resources and relationships to help
Pixelworks establish new strategic partnerships, expand its mobile
visual processor customer base, rapidly grow its business in
China, as well as offer potential
future investment support.
President and CEO of Pixelworks, Todd
DeBonis, commented, "This investment by MTM-Xinhe serves as
further validation of the interest and expanding opportunity for
our technology in the China
market, while underscoring our strategic growth initiatives focused
on this region to drive our future success. Additionally, having a
domestic investment firm hold a meaningful equity position will
further enhance our customer relationships with local OEMs and ODMs
as well as encourage additional local support of Pixelworks China
operations."
Further details about the transaction, including a complete copy
of the agreement, are available in the Form 8-K filed by the
Company today.
About MTM-Xinhe Investment Limited
MTM-Xinhe
Investment Limited is a consortium of strategic investors from the
Chinese semiconductor and mobile eco-system with deep industry
experience, relationship and expertise. These investors have
invested in a broad portfolio of companies including
handset OEM/ODM, PMIC, IMU, ISP, ToF Sensor and MEMS devices.
The fund management team consists of investment professionals and
technology experts from the semiconductor industry, research
institutions, and Tsinghua University, with more than ten
years of experience in M&A and post-investment management
of cross-border semiconductor projects, having led and participated
in global M&A transactions such as the public take-over of
Okmetic and the buy-out of STATS ChipPAC. The team also
has extensive experience in taking companies
public in the new Chinese STAR Board Exchange.
About Pixelworks
Pixelworks provides industry-leading
content creation, video delivery and display processing solutions
and technology that enable highly authentic viewing experiences
with superior visual quality, across all screens – from cinema to
smartphone and beyond. The Company has a 20-year history of
delivering image processing innovation to leading providers of
consumer electronics, professional displays and video streaming
services. Pixelworks is headquartered in San Jose, CA. For more information, please
visit the company's web site at www.pixelworks.com.
Note: Pixelworks and the Pixelworks logo are registered
trademarks of Pixelworks, Inc.
Safe Harbor Statement
This release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements may
be identified by use of terms such as "begin," "continue," "will,"
"expect", "believe," "anticipate" and similar terms or the negative
of such terms, and include, without limitation, statements about
the expected closing of the financing, the various future efforts
of MTM-Xinhe Investment Limited to aid the Company, and the
Company's anticipated growth in business and customers in
China. All statements other than
statements of historical fact are forward-looking statements for
purposes of this release. Such statements are based on management's
current expectations, estimates and projections about the company's
business. These statements are not guarantees of future performance
and involve numerous risks, uncertainties and assumptions that are
difficult to predict. Actual results could vary materially from
those contained in forward looking statements due to many factors,
including, without limitation: any failure to meet any of the
closing conditions for the financing transaction, including
obtaining all required regulatory approvals; the success of the
efforts of MTM-Xinhe Investment Limited in aiding the Company;
Company's ability to execute on its strategy; competitive factors;
the success of the Company's products in China and other markets; current global
economic challenges; changes in the consumer electronics market;
seasonality in the consumer electronics market; the Company's
efforts to achieve profitability from operations; its limited
financial resources; and its ability to attract and retain key
personnel. More information regarding potential factors that could
affect the Company's financial results and could cause actual
results to differ materially from those discussed in the
forward-looking statements is included from time to time in the
Company's Securities and Exchange Commission filings, including its
Annual Report on Form 10-K for the year ended December 31, 2019 as well as subsequent SEC
filings. The forward-looking statements contained in this release
are as of the date of this release, and the Company does not
undertake any obligation to update any such statements, whether as
a result of new information, future events or otherwise.
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SOURCE Pixelworks, Inc.