logo
  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
Advertisement

Advertisement


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

rss feed

Latest Stories

article imageHealth Net, Inc. (HNT): Potential to Be Huge Winners Says Bank of America

As of this keystroke, Health Net, Inc. (NYSE: HNT) shares are up around 4% on the day. The managed health read on...

article imageHomeAway, Inc. (AWAY) Q2 Earnings Preview: Top and Bottom Line Bullish Surprise?

HomeAway, Inc. (NASDAQ:AWAY) will report its financial results for the second quarter ended June 30, 2014 read on...

article imageAmazon.com, Inc. (AMZN) Q2 Earnings Preview: Missing on the Top and Bottom Lines, Again?

Amazon.com, Inc. (NASDAQ:AMZN) will release its second quarter financial results after market close on read on...

article imageFord Motor Company (F) Q2 Earnings Preview: Light on the Top Line?

Ford Motor Company (NYSE:F) will release its preliminary second quarter 2014 results at 6:30 a.m. EDT read on...

Advertisement
Popular Articles

Advertisement
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.