MINNETONKA, Minn., Oct. 26 /PRNewswire-FirstCall/ -- MathStar, Inc. today announced that its initial public offering of 4,000,000 shares of common stock was priced at $6.00 per share. MathStar has granted to the underwriters a 45-day option to purchase up to an additional 600,000 shares of common stock to cover over-allotments, if any. Feltl and Company served as the underwriter of the offering.
The shares will be quoted on The Nasdaq National Market under the symbol "MATH."
Net proceeds from the offering are expected to be approximately $21.1 million and $24.4 million if the underwriters exercise their over-allotment option in full, after deducting the underwriting discounts and commissions, the non-accountable expense allowance and the estimated offering expenses. The net proceeds from the offering will be used to fund research and development, to expand MathStar's sales force and marketing efforts, to pay its 8% convertible promissory notes, to pay a short-term loan and as general working capital.
The common stock offering may be made only by means of a prospectus, copies of which may be obtained by contacting Feltl and Company, 225 South Sixth Street, 42nd Floor, Minneapolis, Minnesota 55402.
A registration statement relating to these securities was declared effective by the U. S. Securities and Exchange Commission on October 26, 2005. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About MathStar
MathStar designs, develops and markets a new class of semiconductor integrated circuit, or chip, it calls field programmable object arrays, or FPOAs. MathStar is headquartered in Minnetonka, Minnesota, with a facility in Portland, Oregon.
Forward-Looking Statements
Statements in this press release, other than historical information, may be "forward-looking" in nature within the meaning of Section 21E the Private Securities Litigation Reform Act of 1995 and are subject to various risks, uncertainties and assumptions. These statements are based on management's current expectations, estimates and projections about MathStar and its industry and include, but are not limited to, MathStar's need for and the availability of future financing, the timing and market acceptance of its product introductions, the quality of its FPOAs, MathStar's ability to develop effective design tools, its reliance on third-party contractors, competition, MathStar's ability to protect its intellectual property, its reliance on contracts and relationships with the United States government, its reliance on existing management, the demands of becoming a publicly-held company, MathStar's ability to address the material weaknesses in its internal controls on a timely basis, and the other factors disclosed in MathStar's filings with the U.S. Securities and Exchange Commission. MathStar undertakes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
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