SAN JOSE, Calif., March 29 /PRNewswire-FirstCall/ -- NeoMagic
Corporation (Pink Sheets: NMGC), announced that it has received
$1.25 million from a private
financing and the exercise of Class A Warrants by two of its
principal shareholders, Bluestone Financial, Ltd. and Attiva
Capital Partners, Ltd.
Bluestone exercised its NeoMagic Class A Warrants to purchase
17,333,334 shares of the Company's common stock and Attiva
exercised its NeoMagic Class A Warrants to purchase 333,333 shares
of the Company's common stock. The Warrants were issued to
Bluestone and Attiva in October 2009
as part of a private placement financing, at an exercise price of
$0.06 per share. The Company has
received $1,060,000 for the exercises
of these Warrants.
In addition to Bluestone and Attiva warrant exercises, private
investors have provided the Company with $190,000 in a private placement, pursuant to
which NeoMagic issued 2,714,293 shares of common stock at
$0.07 per share. The financing closed
on March 25, 2010. The investor group
includes David Tomasello, Chairman
of the Board of Directors and Andrew B.
Rosengard, also a director of NeoMagic and Chairman of the
Audit Committee. There were no agent or broker fees associated with
the private placement funding.
The securities were not registered under the Securities Act of
1933, as amended (the " Act "), at the time of sale.
Accordingly, these securities may not be offered or resold in
the United States, except pursuant
to a registration statement or an applicable exemption from the
registration requirements of the Act. The Stock Purchase Agreement
with respect to the private placement contains certain "piggy-back"
registration rights, which require the Company to use all
reasonable efforts to register the securities when and if it files
a registration statement under the Act, other than for an
underwritten public offering or on a Form S-8 or S-4 registration
statement with respect to employee stock options, employee benefits
plans or acquisitions.
NeoMagic intends to use the net proceeds from these financing
transactions for working capital and general corporate
purposes.
Commenting on this new funding, David
Tomasello, Managing Director of Bluestone and Attiva, and
Chairman of NeoMagic Corporation said, "As we stated upon our
initial investment in NeoMagic we are excited by the Company's
growth prospects and initiatives. We also still strongly believe
that there are potential strategic partnerships that could
accelerate the Company's growth." He continued, "This latest round
of financing demonstrates the aligned interests of NeoMagic's
investors, Board of Directors and management. We will continue to
work together to ensure that Syed
Zaidi and his team have the necessary resources to pursue
those initiatives."
Syed Zaidi, President and CEO of
NeoMagic Corporation added, "All of us at NeoMagic are pleased by
the vote of confidence that our investors have given us. The
additional funds will allow us to continue to move forward with our
on-going operations and 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 our low cost high volume
chip that we feel will provide significant cost savings for
potential customers."
About NeoMagic
NeoMagic designs and delivers consumer electronic device
solutions with semiconductors and software offering exciting new
product functionality for Video, TV, Imaging, Graphics, and Audio.
We provide low cost, innovative multimedia chip technology for
tomorrow's entertainment and communication needs. Our capabilities
give our partners and their customers' high quality answers to
excite and enhance the consumer's lifestyle.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. These statements include
statements about our future product development, strategic
partnerships, marketing efforts and growth. These
forward-looking statements reflect current expectations. However,
actual events and results could vary significantly based on a
variety of factors, including our need for additional funding for
our operations, the ability to locate and hire qualified personnel,
the inability to reach agreement with strategic partners on a
timely basis and on acceptable terms, changes in competitive
conditions and market acceptance of our new products and
technologies. Additional risks and uncertainties are discussed in
NeoMagic's most recent annual report on Form 10-K for the year
ended January 25, 2009, filed on
May 11, 2009, and subsequent Form
10-Q reports filed with the United States Securities and Exchange
Commission (SEC), which are available online at
http://www.sec.gov. NeoMagic may, from time to time, make
additional written or oral forward-looking statements, including
statements contained in filings with the SEC and reports to
shareholders. NeoMagic does not undertake the obligation to update
any forward-looking statements that may be made by or on behalf of
the Company, except as may be required by law.
NeoMagic is a registered trademark, and MiMagic and NeoMobileTV
are trademarks of NeoMagic Corporation. All other trademarks are
the property of their respective owners. NeoMagic disclaims any
proprietary interest in the marks and names of others.
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SOURCE NeoMagic Corporation
