DZS Announces Launch of Public Offering of Common Stock

Rhea-AI Summary

DZS Inc. (NASDAQ: DZSI) announced an underwritten registered public offering of its common stock. The company may grant underwriters a 30-day option to purchase an additional 15% of the shares sold. Proceeds will be used to repay loans to DASAN Networks and for general corporate purposes, including potential acquisitions. The offering is subject to market conditions, and the exact terms will be detailed in a prospectus supplement filed with the SEC.

Positive

• Intended use of proceeds includes debt repayment and acquisitions, potentially strengthening financial position.

Negative

• Issuing new shares may dilute existing shareholder value.

PLANO, Texas, Jan. 26, 2021 (GLOBE NEWSWIRE) -- DZS Inc. (NASDAQ: DZSI) (the “Company” or “DZS”) today announced the launch of an underwritten registered public offering of shares of its common stock. The Company expects to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of its common stock sold in the proposed offering. All shares of common stock to be sold in the proposed offering will be offered by the Company. 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, to repay outstanding borrowings under loans to DASAN Networks, Inc. and for general corporate purposes, which may include funding acquisitions.

Stifel, Needham & Company and B. Riley Securities 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. 333-230476) that was declared effective by the Securities and Exchange Commission (“SEC”) on April 11, 2019. 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 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; or from Needham & Company, LLC, Attention: Syndicate Prospectus Department, 250 Park Avenue, 10th Floor, New York, New York 10177, or by telephone at 800-903-3268 or by email at prospectus@needhamco.com; or from B. Riley Securities, Inc., Attention: Prospectus Department, 1300 North 17th Street, Suite 1300, Arlington, Virginia 22209, or by telephone at 703-312-9580 or by email at prospectuses@brileyfin.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 of mobile transport, broadband access and enterprise networking solutions with more than 20 million products in-service with customers and alliance partners spanning more than 100 countries.

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. 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.

Investor Inquiries
Ted Moreau
Vice President, Investor Relations
Email: IR@dzsi.com

FAQ

What is the purpose of DZS Inc.'s stock offering on January 26, 2021?

The offering aims to repay outstanding loans and support general corporate purposes, potentially including acquisitions.

How much additional stock can underwriters purchase in DZS Inc.'s offering?

Underwriters may purchase up to an additional 15% of shares sold in the offering.

Will the public offering of DZS Inc. affect existing shareholders?

Yes, the issuance of new shares may dilute the value for existing shareholders.

Where can I find the prospectus for DZS Inc.'s stock offering?

The prospectus will be filed with the SEC and available on their website at http://www.sec.gov.