Le Lézard
Subjects: Funding, Stock Sale/Buyback

Transphorm Closes $12.9 Million Non-Brokered Private Placement of Common Stock


Transphorm, Inc. (OTCQX: TGAN)?a pioneer in and global supplier of high reliability, high performance gallium nitride (GaN) power conversion products, announced today the closing of a non-brokered equity financing of $12.9 million through a private placement of 1,673,152 shares of Transphorm's common stock at a price of $7.71 per share to MCM Investment Partners, the investment arm affiliated with MCM Partners (MCM) and US institutional investor Boardman Bay Capital Management. In connection with the financing, Transphorm issued warrants to purchase an aggregate of 348,649 shares of common stock at an exercise price of $9.25 per share. As result of this financing, Transphorm has now closed $45.9 million of equity financings in the past two months. Transphorm continues to pursue its previously announced plans to uplist shares of the Company's common stock on Nasdaq.

Adrian Valenzula, CEO of MCM Partners, commented, "MCM and our limited partners are pleased to make this equity investment in Transphorm. The GaN power market is growing at a rapid pace, and Transphorm is strongly positioned to address this multi-billion-dollar market with its proprietary core GaN design and manufacturing technology backed by over 1,000 world-wide patents. MCM's team is also excited to partner with Transphorm to help drive faster growth."

Will Graves, Chief Investment Officer at Boardman Bay Capital, stated, "We are happy to increase the size of our investment and ownership in Transphorm. The Company continues to do an outstanding job developing its patented high voltage GaN technology as well as accelerating its revenue ramp. We remain very optimistic about GaN power conversion market growth, increased institutional investor awareness of GaN and Transphorm, and the prospects for the Company."

TGAN Technology Enabling the Market

Transphorm's patented GaN platform differs from competitive solutions in ways that are crucial to power conversion application performance requirements ? from 45 W fast chargers/power adapters, 1.5 to 4 kW gaming, datacenter server, crypto mining and industrial power supplies to renewable/energy to higher power automotive converter and inverter applications. Transphorm is one of the few high voltage GaN manufacturers that is vertically integrated, thereby controlling its GaN FET design(s) through innovation, epitaxial wafers (starting material), and manufacturing process. This has led to success in:

The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act") or any state or other jurisdiction's securities laws, and may not be resold absent registration under, or exemption from registration under, the Securities Act. Transphorm has agreed to file a registration statement with the Securities and Exchange Commission registering the resale of the shares of common stock issued and sold in the private placement within 30 days of the closing of the private placement.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Transphorm, Inc.

Transphorm, Inc., a global leader in the GaN revolution, designs and manufactures high performance and high reliability GaN semiconductors for high voltage power conversion applications. Having one of the largest Power GaN IP portfolios of more than 1,000 owned or licensed patents, Transphorm produces the industry's first JEDEC and AEC-Q101 qualified high voltage GaN semiconductor devices. Transphorm's vertically integrated device business model allows for innovation at every development stage: design, fabrication, device, and application support. Transphorm's innovations are moving power electronics beyond the limitations of silicon to achieve over 99% efficiency, 40% more power density and 20% lower system cost. Transphorm is headquartered in Goleta, California and has manufacturing operations in Goleta and Aizu, Japan. For more information, please visit www.transphormusa.com. Follow us on Twitter @transphormusa and WeChat @ Transphorm_GaN.

Forward-Looking Statements

This press release contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning the Company's market position, expectations regarding future anticipated growth and plans to uplist on Nasdaq. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as "may," "will," "should," "would," "expect," "plan," "believe," "intend," "look forward," and other similar expressions among others. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: risks related to Transphorm's operations, such as additional financing requirements and access to capital; competition; the ability of Transphorm to protect its intellectual property rights; and other risks set forth in the Company's filings with the Securities and Exchange Commission. Except as required by applicable law, the Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.



News published on and distributed by: