Proceeds will be used to support the growth of its EZchip Technologies
network processors subsidiary
Yokneam, Israel, November 24, 2004 -- LanOptics Ltd. (NASDAQ: LNOP), a provider of network processors, today announced that it has signed a $14,364,000 private placement agreement with institutional investors for the sale of 1,368,000 ordinary shares, priced at $10.50 per share, and 478,800 five-year warrants with an exercise price of $15.50. LanOptics has agreed to file a registration statement covering the shares and warrants issued in the transaction.
LanOptics will use the proceeds from the sale of the securities to support EZchip as well as for other general corporate purposes, as shall be determined by the Company’s management.
“After this transaction, LanOptics’ consolidated cash balance will exceed $26M, all of which is dedicated to secure EZchip’s future success,” said Eli Fruchter, President and CEO of EZchip and a member of the Board of Directors of LanOptics. “This new funding will serve to enhance EZchip’s leadership in the network processors market and demonstrate our commitment to this emerging market. While other vendors are holding back on their efforts, EZchip is capitalizing on the opportunity and continues its surge forward. Our upcoming NP-2 network processor solidifies our technological edge, provides a significant increase to our addressable market and is already gaining new customers.”
LanOptics is focused on its subsidiary EZchip Technologies, a fabless semiconductor company providing high-speed network processors. EZchip’s breakthrough TOPcore® technology provides both packet processing and classification on a single chip at wire speed. EZchip’s single-chip solutions are used for building networking equipment with extensive savings in chip count, power and cost. Highly flexible 7-layer processing enables a wide range of applications to deliver advanced services for the metro, carrier edge and core and enterprise backbone. Back