DZS Announces Launch of Public Offering of Common Stock

Rhea-AI Summary

DZS Inc. (NASDAQ: DZSI) announced a public offering of 2,507,750 shares of its common stock, alongside 869,565 shares from DASAN Networks, Inc. The company expects to grant underwriters a 30-day option to purchase up to an additional 15% of the shares. Proceeds will fund general corporate purposes including R&D and working capital. The offering is subject to market conditions and will be executed under a shelf registration statement declared effective on May 11, 2022. Cowen and Stifel are the joint book-running managers for this offering.

Positive

• Intended use of proceeds includes funding for research and development and working capital.

Negative

• Possible dilution of shares due to the public offering.
• Market uncertainties regarding the completion and terms of the offering.

DALLAS, Nov. 16, 2022 (GLOBE NEWSWIRE) -- DZS Inc. (NASDAQ: DZSI) (the “Company” or “DZS”), a global leader in access and optical edge infrastructure and cloud software solutions, today announced the launch of an underwritten registered public offering of 2,507,750 shares of its common stock by the Company and 869,565 shares of DZS common stock by DASAN Networks, Inc. (the “selling stockholder”).  The Company and the selling stockholder expect to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of the common stock sold by the Company and the selling stockholder in the proposed offering. The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.  The Company intends to use the net proceeds from the offering, if completed, 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 proposed 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 preliminary prospectus supplement describing the terms of the proposed 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 preliminary prospectus supplement and accompanying prospectus relating to the proposed 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. The final terms of the proposed offering will be disclosed in a final prospectus supplement to be filed with the SEC.

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.

About DZS Inc.
DZS Inc. (NASDAQ: DZSI) is a global leader in access and optical edge infrastructure and cloud software solutions.

DZS, the DZS logo, and all DZS product names are trademarks of DZS Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change.

Forward-Looking Statements
This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Private Securities Litigation Reform Act of 1995, including statements regarding the anticipated consummation of the offering, the intended use of offering proceeds and other aspects of the offering. These statements reflect the beliefs and assumptions of the Company’s management as of the date hereof. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “plan,” “project,” “seek,” “should,” “target,” “will,” “would,” variations of such words, and similar expressions are intended to identify forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. The Company’s actual results could differ materially and adversely from those expressed in or contemplated by the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, those risk factors contained in the Company’s SEC filings available at www.sec.gov, including without limitation, the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and subsequent filings. In addition, additional or unforeseen effects from the COVID-19 pandemic and the global economic climate may give rise to or amplify many of these risks.

Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. DZS undertakes no obligation to update or revise any forward-looking statements for any reason.

FAQ

What is the size of the public offering by DZS Inc.?

DZS Inc. is offering 2,507,750 shares of its common stock, with an additional 869,565 shares from DASAN Networks, Inc.

What will DZS Inc. use the proceeds from the offering for?

The proceeds will be used for general corporate purposes, including research and development, sales and marketing initiatives, and working capital.

Who are the underwriters for DZS Inc.'s stock offering?

Cowen and Stifel are acting as joint book-running managers for the offering.

Is the stock offering by DZS Inc. guaranteed to complete?

The offering is subject to market conditions, and there is no assurance of its completion or the actual terms.