DZS Inc. (NASDAQ:DZSI) (the “Company” or “DZS”), a global leader in access and optical edge infrastructure and cloud software solutions, today announced that it has priced an underwritten registered public offering by the Company and DASAN Networks, Inc. (the “selling stockholder”) of an aggregate of 3,377,315 shares of the Company’s common stock at a price to the public of $11.50 per share, of which 2,507,750 shares are being offered by the Company and 869,565 shares are being offered by the selling stockholder. The Company and the selling stockholder have granted the underwriters a 30-day option to purchase at the public offering price, less the underwriting discount, up to an additional 376,162 shares and 130,435 shares of common stock, respectively, or 506,597 shares of common stock in the aggregate. The offering is expected to close on or about November 21, 2022, subject to satisfaction of customary closing conditions.
The total gross proceeds payable to the Company from the offering are expected to be approximately $28.8 million. This amount assumes no exercise of the underwriters’ option to purchase additional shares. The Company intends to use the net proceeds from the offering for general corporate purposes, which may include research and development, sales and marketing initiatives, and the funding of working capital. The Company will not receive any of the proceeds from the sale of the shares of common stock by the selling stockholder.
Cowen and Stifel are acting as joint book-running managers for the offering.
The offering is being made pursuant to the Company’s shelf registration statement on Form S-3 (File No. 333-262634) that was declared effective by the Securities and Exchange Commission (“SEC”) on May 11, 2022. The shares may be offered only by means of a prospectus. A final prospectus supplement describing the terms of the offering and the accompanying base prospectus will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov. Alternatively, copies of the final prospectus supplement and accompanying prospectus relating to the offering, when available, may be obtained from Cowen and Company, LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, Attention: Prospectus Department, by telephone at (833) 297-2926, or by email at PostSaleManualRequests@broadridge.com; or from Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, California 94104, or by telephone at 415-364-2720 or by email at syndprospectus@stifel.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
