• Welcome to TechPowerUp Forums, Guest! Please check out our forum guidelines for info related to our community.

OCZ Technology Group Raises $13 Million in Private Placement

btarunr

Editor & Senior Moderator
Staff member
Joined
Oct 9, 2007
Messages
46,274 (7.69/day)
Location
Hyderabad, India
System Name RBMK-1000
Processor AMD Ryzen 7 5700G
Motherboard ASUS ROG Strix B450-E Gaming
Cooling DeepCool Gammax L240 V2
Memory 2x 8GB G.Skill Sniper X
Video Card(s) Palit GeForce RTX 2080 SUPER GameRock
Storage Western Digital Black NVMe 512GB
Display(s) BenQ 1440p 60 Hz 27-inch
Case Corsair Carbide 100R
Audio Device(s) ASUS SupremeFX S1220A
Power Supply Cooler Master MWE Gold 650W
Mouse ASUS ROG Strix Impact
Keyboard Gamdias Hermes E2
Software Windows 11 Pro
OCZ Technology Group, Inc. (NASDAQ: OCZ) (the "Company"), a leading provider of high-performance solid-state drives (SSDs) and power management solutions for computing devices and systems, today announced that it has signed definitive agreements with various institutional and accredited investors to raise gross proceeds of approximately $13 million in a private placement of Senior Secured Convertible Debentures and Warrants. The transaction is subject to customary closing conditions. The Senior Secured Convertible Debentures are secured by a lien on all of the assets of OCZ Technology Group, Inc. and its subsidiaries, and are subordinate to the Hercules Technology Growth Capital, Inc. ("Hercules") Loan and Security Agreement. The debentures carry a 9 percent interest rate per year, payable in cash, and will mature on the one year anniversary of the closing date. The debentures are convertible into shares of OCZ Technology common stock at a conversion price of $1.70 per share.

In connection with the offering of the debentures, warrants will also be issued at closing that provide investors the opportunity to purchase common stock equal to 75 percent of the number of shares into which the debentures will be convertible, and at a strike price of $0.75 per share. The warrants will have a 5 year term from the closing date. Both the conversion price of the debentures and the exercise price of the warrants are subject to price adjustments in relation to anti-dilution events. "This new financing provides OCZ with additional capital to continue the transformation of our business as the Company continues to focus on delivering high performance, client and enterprise solid state storage solutions," stated Rafael Torres, CFO of OCZ Technology. In addition, OCZ Technology also announced that it has retained Deutsche Bank Securities Inc. as financial advisor to assist the board of directors in evaluating various strategic alternatives available to the Company.

At closing, the Company will amend its Loan and Security agreement with Hercules as the Company did not meet certain covenants. In connection with the amendment, all of Hercules warrants, or approximately 3.9 million warrants, will be cancelled. This loan will now be payable on June 1, 2014, and will include a loan fee of $6.5 million that will be payable at maturity of the loan and be junior to the Senior Secured Convertible Debentures. Upon the effectiveness of this amendment, Hercules waives any existing defaults. Additional details of the transaction will be filed in an 8-K and OCZ encourages investors to read the filing for a better understanding of the terms of the funding.

OCZ will be required to file a resale registration statement within 60 days following the closing that covers the resale by the purchasers of the shares issuable upon conversion of the debentures or exercise of the warrants. The debentures and warrants have not been and will not be registered under the Securities Act of 1933 or the securities laws of any state or jurisdiction. This press release does not and shall not constitute an offer to sell, or the solicitation of an offer to buy, any of the securities, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration under the securities laws of any state or jurisdiction.

View at TechPowerUp Main Site
 
Joined
Apr 10, 2013
Messages
302 (0.08/day)
Location
Michigan, USA
Processor AMD 1700X
Motherboard Crosshair VI Hero
Memory F4-3200C14D-16GFX
Video Card(s) GTX 1070
Storage 960 Pro
Display(s) PG279Q
Case HAF X
Power Supply Silencer MK III 850
Mouse Logitech G700s
Keyboard Logitech G105
Software Windows 10
Go mid-size guy!

Things must decent behind the curtain for more investment. I hope OCZ keeps this rolling. I prefer their SSDs because they are just as reliable as the behemoths, a bit faster, and have actual people you can talk to if you have a problem. I get frustrated when ppl talk about reliability and say OCZ is mediocre or horrible. OCZ just doesn't have the internet scrubbers and PR that other giants must have. A major review site reviewed the 840 Pro and that review even mentioned 2 review samples failing. Did anyone care this happened even to an expert like Anand?
 

W1zzard

Administrator
Staff member
Joined
May 14, 2004
Messages
26,956 (3.71/day)
Processor Ryzen 7 5700X
Memory 48 GB
Video Card(s) RTX 4080
Storage 2x HDD RAID 1, 3x M.2 NVMe
Display(s) 30" 2560x1600 + 19" 1280x1024
Software Windows 10 64-bit
So OCZ went to a loan shark to borrow at 9% interest rate, when banks can borrow at roughly 0%

that it has retained Deutsche Bank Securities Inc. as financial advisor to assist the board of directors in evaluating various strategic alternatives
translation: we are still up for sale, but nobody has shown interest yet

borrowing that money might help them keep going until a buyer is found

amend its Loan and Security agreement with Hercules [..] This loan will now be payable on June 1, 2014, and will include a loan fee of $6.5 million
translation: Hercules doesn't like us anymore and wanted out. We'll have to repay their original 10M + 6.5M fee
 
Last edited:

de.das.dude

Pro Indian Modder
Joined
Jun 13, 2010
Messages
8,754 (1.74/day)
Location
Stuck in a PC. halp.
System Name Monke | Work Thinkpad| Old Monke
Processor Ryzen 5600X | Ryzen 5500U | FX8320
Motherboard ASRock B550 Extreme4 | ? | Asrock 990FX Extreme 4
Cooling 240mm Rad | Not needed | hyper 212 EVO
Memory 2x16GB DDR4 3600 Corsair RGB | 16 GB DDR4 3600 | 16GB DDR3 1600
Video Card(s) Sapphire Pulse RX6700XT 12GB | Vega 8 | Sapphire Pulse RX580 8GB
Storage Samsung 980 nvme (Primary) | some samsung SSD
Display(s) Dell 2723DS | Some 14" 1080p 98%sRGB IPS | Dell 2240L
Case Ant Esports Tempered case | Thinkpad | Antec
Audio Device(s) Logitech Z333 | Jabra corpo stuff
Power Supply Corsair RM750e | not needed | Corsair GS 600
Mouse Logitech G400 | nipple
Keyboard Logitech G213 | stock kb is awesome | Logitech K230
VR HMD ;_;
Software Windows 10 Professional x3
Benchmark Scores There are no marks on my bench
thanks for translating w1zz!

so they are broke. sad... i was kinda looking at the stock price and wondering that.
 
Joined
Jan 5, 2013
Messages
895 (0.22/day)
There doesn't need to be anything "behind the curtain". Investors can take a stake in the company and they get paid no matter what happens to the company. They could eventually take complete control of the company and liquidate it or restructure it.
 
Joined
Nov 1, 2008
Messages
468 (0.08/day)
System Name It does stuff
Processor Ryzen 3600
Motherboard B550 Gaming X V2
Cooling Stock
Memory 16GB DDR4 3600
Video Card(s) RX 6700XT
Storage Too much
Display(s) 27" & 21.5"
Case Antec 300
Audio Device(s) ASUS Xonar DGX / Sony MDR-XB500s
Power Supply Corsair 750W
Software Win10 64
Things must decent behind the curtain for more investment. I hope OCZ keeps this rolling. I prefer their SSDs because they are just as reliable as the behemoths, a bit faster, and have actual people you can talk to if you have a problem. I get frustrated when ppl talk about reliability and say OCZ is mediocre or horrible. OCZ just doesn't have the internet scrubbers and PR that other giants must have. A major review site reviewed the 840 Pro and that review even mentioned 2 review samples failing. Did anyone care this happened even to an expert like Anand?

I've never seen Samsung, Crucial, Intel etc caught using fake NAND rated for products like childrens toys though, like OCZ has. No SSD manufacturer has failure rates like OCZ's.

And this is not because OCZ sells more SSDs than anyone else (they don't) and thus would have higher failure rates simply because more people have OCZ SSDs. OCZ squats in a corner and squeezes out a lot of trash. Even if the Vector is brilliant, OCZ have already shit all over their reputation. Why do you think they are falling into bankruptcy?
 

Easy Rhino

Linux Advocate
Staff member
Joined
Nov 13, 2006
Messages
15,436 (2.43/day)
Location
Mid-Atlantic
System Name Desktop
Processor i5 13600KF
Motherboard AsRock B760M Steel Legend Wifi
Cooling Noctua NH-U9S
Memory 4x 16 Gb Gskill S5 DDR5 @6000
Video Card(s) Gigabyte Gaming OC 6750 XT 12GB
Storage WD_BLACK 4TB SN850x
Display(s) Gigabye M32U
Case Corsair Carbide 400C
Audio Device(s) On Board
Power Supply EVGA Supernova 650 P2
Mouse MX Master 3s
Keyboard Logitech G915 Wireless Clicky
Software The Matrix
OCZ made a solid product with good support but they just didn't get the word out! i think they should have spent some more money marketing and perhaps investing in a high end lineup so they could tout themselves as a worthy competitor. it's too bad.
 
Joined
Jul 26, 2007
Messages
574 (0.09/day)
Location
Melbourne, Australia
System Name beast
Processor 3930K
Motherboard Gigabyte GA-X79-UD3
Cooling Noctua NH-U12P SE2011
Memory 16GB Kingston Value DDR3 1333Mhz CL9
Video Card(s) Gigabyte Aorus Elite RTX3060 12GB
Storage 1x 120GB Intel 520 and some spinny bois
Display(s) 3x DELL S2721DGF
Case Antec P182
Power Supply Corsair 750w
VR HMD Oculus Quest 2
Software Windows 10
I've never seen Samsung, Crucial, Intel etc caught using fake NAND rated for products like childrens toys though, like OCZ has. No SSD manufacturer has failure rates like OCZ's.

And this is not because OCZ sells more SSDs than anyone else (they don't) and thus would have higher failure rates simply because more people have OCZ SSDs. OCZ squats in a corner and squeezes out a lot of trash. Even if the Vector is brilliant, OCZ have already shit all over their reputation. Why do you think they are falling into bankruptcy?


I completely agree.

Funny how you reference three actually real world reliable brands as comparison to the trash OCZ spits out.

It's simple pure fact that the failure rates of the entire Vertex and Agility lines are totally abhorrent.
 
Top