13 December 2021
Transphorm raises $12.9m from MCM Investment
Transphorm Inc of Goleta, near Santa Barbara, CA, USA — which designs and manufactures JEDEC- and AEC-Q101-qualified gallium nitride (GaN) field-effect transistors (FETs) for high-voltage power conversion applications —has secured non-brokered equity financing of $12.9m through a private placement of 1,673,152 shares of its common stock at a price of $7.71 per share to MCM Investment Partners, the investment arm affiliated with MCM Partners and US institutional investor Boardman Bay Capital Management. In connection with the financing, Transphorm issued warrants to purchase an aggregate of 348,649 shares of common stock at an exercise price of $9.25 per share. As result of this financing, Transphorm has now secured $45.9m of equity financings in the past two months. The firm says that it continues to pursue its previously announced plans to uplist shares of its common stock on Nasdaq.
“The GaN power market is growing at a rapid pace, and Transphorm is strongly positioned to address this multi-billion-dollar market with its proprietary core GaN design and manufacturing technology backed by over 1000 worldwide patents,” comments MCM Partners’ CEO Adrian Valenzula.
“We are happy to increase the size of our investment and ownership in Transphorm,” states Will Graves, chief investment officer at Boardman Bay Capital. “The company continues to do an outstanding job developing its patented high-voltage GaN technology as well as accelerating its revenue ramp. We remain very optimistic about GaN power conversion market growth, increased institutional investor awareness of GaN and Transphorm, and the prospects for the company.”
Transphorm says that its patented GaN platform differs from competing solutions in ways that are crucial to power conversion application performance requirements – from 45W fast chargers/power adapters, 1.5-4kW gaming, data-center server, crypto-mining and industrial power supplies to renewable energy to higher-power automotive converter and inverter applications. The firm adds that it is one of the few high-voltage GaN manufacturers that is vertically integrated, controlling its GaN FET design(s) through innovation, epitaxial wafers (starting material), and manufacturing process.