MoSys Inc. (NASDAQ: MOSY) Surges 18.4% Following Completion Of $13 Million Direct Offering

MoSys Inc. (NASDAQ: MOSY) jumped 18.4% after the company announced a definitive agreement with institutional investors to offer 1,818,181 common shares in a registered direct offering at $7.15 per share for total proceeds of $13 million.

MoSys to close the direct offering on June 9, 2021

The company will use proceeds from the offering for working capital and corporate business purposes. 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 US Securities and Exchange Commission (“SEC”) and declared effective on December 3, 2020. The company will submit a prospectus supplement with the Securities and Exchange Commission posted on the SEC’s website.

MoSys reported revenue of $r1.3 million in Q1 2021

Recently the company released its Q1 2021, in which net revenue was $1.3 million, and product revenue was $1.2 million.  However, there was a decrease in revenue quarter over quarter, reflecting the lower Bandwidth Engine® products shipments and declining royalties from 1T-SRAM licensees. 

MoSys CEO Dan Lewis said that the company made progress with its design-win pipeline and client engagements in the first quarter while also managing the tough supply chain environment. He added that MoSys operations team has set suitable inventory levels to serve its clients’ requirements as supplier lead times have increased. However, the company has had to make revisions to client orders due to production constraints caused by shortages in other components. Lewis said that overall, semiconductor supply difficulties are expected to continue to affect customers in the second quarter, with a recovery to more normal ordering and delivery levels expected in the second half of the year.

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