OCZ Technology Group Raises $13 Million in Private Placement
 

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.

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