Netlist, Inc. (NASDAQ:NLST) Tanks

Netlist, Inc. (NASDAQ:NLST)

Netlist, Inc. (NASDAQ:NLST)

Netlist, Inc. (NASDAQ:NLST) stock is down almost 30%, to $0.60, at the opening of the market on a volume figure that indicates trading at over 127 times the daily average. Traders are reacting to the company’s pricing of its public offering of 8.5 million shares of its common stock at a price of $0.60 per share. Netlist has also granted the underwriters a 30-day option to purchase an additional 1.275 million shares of its common stock at $0.60 per share if the need arises to cover any over-allotments. The offering is expected to close on or about August 22, 2017.

Netlist, Inc. (NASDAQ:NLST)
One month stock price chart for NLST

The total gross proceeds are expected to be approximately $5.1 million. After deducting expenses, the net proceeds are expected to be approximately $4.5 million (assuming no exercise of the underwriters’ over-allotment option). The net proceeds will be used by Netlist, Inc. (NASDAQ:NLST) for general corporate purposes, including working capital and other general and administrative purposes.

The current slide in the price of NLST began on August 10, after Netlist, Inc. (NASDAQ:NLST) released Q2 2017 financials. The company’s net loss for the second quarter ended July 1, 2017, was (-$3.8) million, or (-$0.06) loss per share, compared to a net loss for the same period in the prior year of (-$1.5) million, or (-$0.03) loss per share. The slide has continued through the announcement of the dilutive public offering as NLST shares have hit new 52-week lows, eclipsing the old low of $0.83.

Irvine, CA-based Netlist, Inc. (NASDAQ:NLST) is a global provider of high-performance modular memory subsystems to original equipment manufacturers. Netlist specializes in hybrid memory – the merging of DRAM and NAND flash raw materials to create memory solutions. The Company’s patented memory technologies claims to supply superior performance, and high density in a cost-efficient solution.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Author: Marcus Anderson

Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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