• OCZ Technology Group, Inc. Message Board

  • SHAFT MOB SHAFT MOB Sep 6, 2013 20:23 Flag

    Is $OCZ for sale?

    That has been the rumor for exactly 1 year now. With previous $STX negotiations confirmed there was value in $OCZ one year ago. Today not so much. Main reason they are delinquent with Nasdaq. Recently, OCZ Technology Group Inc. has retained Deutsche Bank AG to help evaluate strategic alternatives. A few logical options can occur. If you look back at RS comments regarding raising capital in last PR, he said "in the process of securing." And then 3 weeks later, they announce a $13M private placement. Well how long has $OCZ been working on that? New CFO came in Mar 2013, so most likely then or even possibly before that.

    So is $OCZ up for sale? Have they been shopping the Power & Cooling business behind closed doors? Or the entire company? Why did Arthur get loan sharked for $30M from $HTGC for them to only take $10M

    Recently CFO stated they will amend a loan agreement with Hercules Technology Growth Capital Inc. because it didn't meet certain financial requirements. Under an amended agreement with Hercules, approximately 3.9 million warrants will be canceled. 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.

    We all know OCZ has struggled to bolster revenue amid a shortage of memory chips used in its products. Yet have done fairly well in a tough environment. And last year $OCZ 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 August that it expected to become current with its SEC filings before the September deadline.

    A PR has not been released in a while. News comes any day.

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