Pixelworks Shares Plunge Following Dilutive Equity Offering

Pixelworks Inc. witnessed a dramatic sell-off on Friday, with its stock price collapsing by more than 11% to close at $12.84. This sharp decline was triggered by the company’s announcement of a deeply discounted capital raise and concurrent discussions about the potential sale of a Chinese subsidiary.

The visual display technology firm confirmed on Monday that it has entered into a registered direct offering agreement with two institutional investors. The deal involves the sale of 666,667 shares at a price of $10.50 per share. This pricing represents a substantial 27% discount to the market price at the time of the announcement. The transaction is expected to generate approximately $7 million in gross proceeds, which Pixelworks indicated would be allocated toward working capital and general corporate purposes.... Read more...