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Vitesse Announces $23 Million Offering

Vitesse Semiconductor Corp. will raise $23.2 million in a secondary offering, the company announced on Thursday. The Camarillo chip maker will sell nearly 7.5 million shares of its stock to the public for $3.35 a share, a 12 percent discount to its closing price Wednesday. The money will be used for working capital and general corporate purposes. The company has also given underwriters a 30-day option to purchase an additional 1.1 million shares. The offering is expected to close June 17. In recent weeks, Vitesse has announced a series of new customer contracts, including Planet Technology Corp., a network equipment manufacturer for small businesses in Taiwan, and FreeScale, another chip maker and hardware manufacturer in Austin, Texas. Needham & Company, LLC is acting as the sole book-running manager of the offering. Craig-Hallum Capital Group LLC, The Benchmark Company, LLC and Northland Securities, Inc. are acting as co-managers. Shares fell 43 cents, or 11 percent, to close at $3.39 on the Nasdaq.

Joel Russel
Joel Russel
Joel Russell joined the Los Angeles Business Journal in 2006 as a reporter. He transferred to sister publication San Fernando Valley Business Journal in 2012 as managing editor. Since he assumed the position of editor in 2015, the Business Journal has been recognized four times as the best small-circulation tabloid business publication in the country by the Alliance of Area Business Publishers. Previously, he worked as senior editor at Hispanic Business magazine and editor of Business Mexico.

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