PXLW 8-K: Pixelworks subsidiary PWSH raises $15.7M from Chinese investors; reaffirms Q4 revenue guidance

Pixelworks subsidiary PWSH raises $15.7M from Chinese investors; reaffirms Q4 revenue guidance

PIXELWORKS, INC

Investors commit RMB 100M ($14.3M) for 2.76% of PWSH at ~$501M pre-money valuation.

Employee ESOP commits RMB 9.8M ($1.4M) for 0.54% at ~$250.7M pre-money valuation (50% discount).

Post-closing Pixelworks holds 78.2% of PWSH; total proceeds to PWSH ~$15.7M.

PWSH plans to file for STAR Market IPO in 2023; investors get 10% return put on change of control.

Reaffirmed Q4 2022 revenue guidance of $16M to $18M, originally provided Nov 7, 2022.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

PIXELWORKS, INC entered into Capital Increase Agreement with certain private equity investors (Beijing E-town Changhou Display Chip Venture Capital Center (Limited Partnership) and Yangzhou Qizheng Equity Investment Partnership (Limited Partnership)) and Jing Xin Ying (Shanghai) Management Consulting Partnership (Limited Partnership) (ESOP) valued at approximately RMB 109.8 million ($15.7 million USD) (effective 2022-12-21).

Action: entry
Agreement: equity purchase
Counterparty: certain private equity investors (Beijing E-town Changhou Display Chip Venture Capital Center (Limited Partnership) and Yangzhou Qizheng Equity Investment Partnership (Limited Partnership)) and Jing Xin Ying (Shanghai) Management Consulting Partnership (Limited Partnership) (ESOP)
Value: approximately RMB 109.8 million ($15.7 million USD)
Effective: 2022-12-21

Exact text from the filing

On December 21, 2022, the Company and its subsidiary, PWSH, entered into a Capital Increase Agreement (“CIA”) with certain private equity investors based in China (Beijing E-town Changhou Display Chip Venture Capital Center (Limited Partnership) and Yangzhou Qizheng Equity Investment Partnership (Limited Partnership)) (collectively, the “Investors”) and Jing Xin Ying (Shanghai) Management Consulting Partnership (Limited Partnership), an entity owned by certain of the employees of PWSH (the “ESOP”)(none of the employees are a named executive officer of the Company).

View on SEC.gov