Pixelworks Announces Exercise of Over-Allotment Option for Common Stock

Pixelworks PXLW today announced that the underwriter in its recently completed public offering of common stock has exercised in full its over-allotment option and purchased 547,500 shares of common stock. With the over-allotment shares, a total of 4,197,500 shares of common stock were sold in the offering at a price to the public of $2.24 per share. Gross proceeds to the Company from the offering, prior to deducting underwriting discounts, commissions, and other expenses, were approximately $9,402,400. The sale of the over-allotment shares closed on May 27, 2011. Pixelworks intends to use the net proceeds from the offering for general corporate purposes, which may include, among other things, increasing its working capital, the financing of ongoing operating expenses and overhead, repayment of debt and funding capital expenditures. Pending the application of the net proceeds, Pixelworks may invest the proceeds in marketable securities and short-term investments.