Join        Login             Stock Quote

Meru Networks (MERU) Prices 3M Share Offering At Discount

 February 27, 2013 10:10 AM

(By Balaseshan) Meru Networks Inc. (NASDAQ: MERU), which provides wireless local area network (LAN) services, said it has priced an underwritten public offering of 3 million common shares at $4.00 per share, a 2.4% discount to previous close.

Gross proceeds, before deducting the underwriting discounts and commissions and offering expenses payable by Meru, are expected to be about $12 million. The offering is expected to close on or about March 4.

Meru has granted the underwriter a 30-day option to purchase up to 450,000 additional shares of common stock to cover overallotments, if any. Directors and executive officers of Meru Networks will purchase shares from the underwriters at the public offering price.

As of February 14, 2013, 15.78 million shares of outstanding common stock were held by non-affiliates, the aggregate market value of which was $70.39 million calculated based on the closing price per common share of $4.46 on February 22.

Meru currently intends to use the net proceeds from the sale of common shares for general corporate purposes, which may include working capital, sales and marketing activities and general and administrative matters.

The company said it will retain broad discretion over the use of the net proceeds from this offering. Pending the application of the net proceeds, Meru plans to invest the net proceeds in short-term, investment-grade securities.

The company expects to incur operating losses and continued cash usage in 2013 as a result of expenses associated with the continued development and expansion of its business. As of December 31, 2012, Meru had cash and cash equivalents balances of $22.9 million.

MERU is trading up 9.76% at $4.50 on Wednesday. The stock has been trading between $1.42 and $5.43 for the past 52 weeks.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageLong-term Relationships and Credit Scores

Unlike many commentators, I tend to think credit scores are a good read on...

article imageIn Defense Of Rolling Return Charts

Robeco’s Lukas Daalder has a bit of an issue with rolling-performance graphics. Bashing a recent chart of read on...

article imageThe S&P 500’s Worrisome Downturn In Drawdown

Last Friday I reviewed some of the bearish signals that were casting dark shadows across the US stock read on...

article imageADP: Private-Sector Employment Rises A Solid 200k In September

The pace of growth for private-sector employment picked up in September, according to this morning’s ADP read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

Recent Articles by Balaseshan
More Articles on: Finance , Computer and Technology

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.