Embedded memory and logic technology specialist NeoMagic Corporation has executed a private financing (PIPE) for 6,000,000 shares of the Company’s Common Stock priced at USD0.01 per share. The financing is led by Bluestone Financial LTD investor group and Mediastone LLC, two prominent venture capital and private equity firms.
David Tomasello, NeoMagic’s Chairman of the Board, is managing director of Bluestone Financial and Jorge-Granier Phelps, a member of NeoMagic’s Board of Directors, is managing director of Mediastone LLC.
Also participating in the transaction, are Syed Zaidi, President and CEO, and Charlotte Willson, Vice President Finance and Principal Accounting Officer, and two additional employees.
The initial closing date of the PIPE was set at January 11, 2012 and at the discretion of the Company, the Company may conduct one or more subsequent closings within 150 days of the initial closing date, allowing additional investors to participate in the PIPE up to a maximum aggregate of 16,000,000 shares of its common stock for a maximum financing of USD160,000.
Syed Zaidi, President and CEO of NeoMagic Corporation says: “This funding milestone shows that our investors share our enthusiasm as we execute to our business plan and move forward with new product development. By securing funding, we will now be able to accelerate our efforts to bring to market a new generation of products and to capitalise on what we believe are high-volume and high-growth opportunities for the Company.”
Separately, NeoMagic has retained Proactive Investors a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London to improve investor communications and increase the Company’s visibility with high net worth investors, fund managers, hedge funds and private client brokers.
