Shares of Netlist Inc. (NLST) are down 50% from February 23 when the provider of memory solutions for the cloud computing and storage markets, raised $10.4 million in an underwritten public offering for general corporate purposes.
The Irvine, Calif.-based company closed an underwritten public offering of 8,846,154 common shares on February 23 for $1.30 each. The number of shares Netlist sold in the offering included underwriter Craig-Hallum Capital Group’s full exercise of its over-allotment option of 1,153,846 common shares.
Shares of Netlist are currently trading at around 64 cents. They’ve traded between 52 cents and $2.15 over the past year.
Netlist is scheduled to release its year-end 2014 earnings tomorrow morning.
The move to raise money came shortly after Netlist on February 17 amended the credit financing agreement it entered in July 2013 with an affiliate of Fortress Investment Group LLC (FIG).
Netlist has said the amended agreement accelerates the availability of financing and enhances Netlist's economics through a cap on the financing's total patent monetization share.
In July 2013, Netlist announced that it closed new credit financing for up to $15 million from an affiliate of Fortress.
The company said it needed the money to support the ongoing development of its product and patent portfolios covering next generation server and storage systems.
Today, the company announced that jury verdict was reached in its case against Diablo Technologies in the United States District Court for the Northern District of California.
“The verdict found for the defendant on the breach of contract, misappropriation of trade secrets and inventorship counts, while finding for Netlist on the two trademark counts,” the company said.
After the verdict, Judge Yvonne Gonzalez Rogers ordered briefing to determine the effect of the jury verdict on the preliminary injunction entered in January. According to the schedule set by the judge, briefing will be complete by April 3, with an oral hearing tentatively scheduled for April 10.
Officials from Netlist couldn’t be reached for comment on the share decline or the verdict.
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