Transmeta Corp [TMTA] plans to raise up to $89 million through a public offering of shares to shore up cash reserves depleted by a long run of losses. The low-power chip vendor plans a public offering of 25 million shares and underwriters will have an option to purchase an additional 15% of shares sold.
The company has been a disappointment to the stock market, and third-quarter figures released last month showed a net loss of $23.7 million, up from a loss of $21.8 million on sales down 58.2% at $2.7 million. Cash reserves were $74.4 million, down from $129.4 million at the start of the year.
The company’s future depends on market reception to its new Efficeon processor range that it claims will offer twice the performance of its predecessors at a given clock speed. The share sale is essential to reassure potential customers that it is a supplier they can depend on.
This article was based on material originally published by ComputerWire.