MoSys Inc. (NASDAQ: MOSY) shares dropped 23.05% after the company announced the signing of a definitive agreement with institutional investors for the sales and acquisition of 1,818,181 common shares at $7.15 per share for total proceeds of $13 million in registered direct offering.
MoSys to conclude offering on June 9
The company will use the proceed for general corporate purposes and working capital. The offering is scheduled to conclude on or around June 9, 2021, assuming all usual closing conditions are met. MoSys made the offering pursuant to a shelf registration statement on Form S-3 (File No. 333-250936) previously filed with the United States Securities and Exchange Commission (the “SEC”) and declared effective on December 3, 2020.
Although this sale will give the company much needed funds it will lower the stock price since the additional shares will be added to existing equity. The offering will dilute the overall share price since earnings have to be shared among the large number of shares.
MoSys launches optimized P4 functionality in its pipeline
Recently the company announced that the Stellar Packet Classification Platform IP family from MoSys will now include support for efficient P4 (Programming Protocol-Independent Packet Processors) pipeline acceleration. The technology can be readily incorporated into P4 pipelines available from top FPGA vendors, and is planned to be offered to early access clients in Q3, 2021.
Michael Miller, the company’s CEO, said that the company has been a P4 supporter and will now add P4 support to its Stellar Classification platform family of digital accelerators and an IP that they can load into FPGAs. He added that complex five-tuple Access Control List (ACL) rule databases can be expanded internal FPGA SRAM and HBM memory combination, enabling enormous databases of rules, thanks to the new P4 functionality integrated in an FPGA.