Shanghai Pudong Science and Technology Investment Co Ltd (PDSTI) and its affiliate have agreed to invest about $5m in GigOptix Inc of San Jose, CA, USA (a fabless supplier of analog semiconductor and optical communications components for fiber-optic and wireless networks).
PDSTI will purchase 1,754,385 unregistered shares of common stock at a price of $2.85 per share (a premium of about 17% to GigOptix's average trading price over the prior 30 days). Immediately following the closing of the investment, PDSTI will hold about 3.77% of GigOptix's issued and outstanding common stock.
Proceeds from the investment will go towards providing financial flexibility and pursuing additional strategic growth opportunities.
"We welcome PDSTI as a new investor to GigOptix, as we continue to grow our core high-speed enterprise communications and cloud connectivity business," says GigOptix's founder, chairman & CEO Dr Avi Katz.