Deutsche Bank to Review OCZ's Strategic Options
OCZ Technology Group Inc. has retained Deutsche Bank AG to help evaluate strategic alternatives.
The company will amend a loan agreement with Hercules Technology Growth Capital Inc. because it didn?t meet certain financial requirements, OCZ said today in a statement.
Under an amended agreement with Hercules, approximately 3.9 million warrants will be canceled, OCZ said. The loan will now be payable on June 1, 2014, and will include a fee of $6.5 million. OCZ also said it raised $13 million in a private placement of senior secured convertible debt and warrants.
OCZ has struggled to bolster revenue amid a shortage of memory chips used in its products, and last year disclosed an investigation by the U.S. Securities and Exchange Commission of a customer-incentive program that forced the company to put off reporting quarterly results. The company said in July that it expected to become current with its SEC filings by the end of this month.
Under an amended agreement with Hercules, approximately 3.9 million warrants will be canceled, OCZ said. The loan will now be payable on June 1, 2014, and will include a fee of $6.5 million. OCZ also said it raised $13 million in a private placement of senior secured convertible debt and warrants.
OCZ has struggled to bolster revenue amid a shortage of memory chips used in its products, and last year disclosed an investigation by the U.S. Securities and Exchange Commission of a customer-incentive program that forced the company to put off reporting quarterly results. The company said in July that it expected to become current with its SEC filings by the end of this month.
