OCZ Executes Purchase Agreements for $22 Million Private Placement

OCZ Technology Group, Inc. has signed definitive agreements with various institutional and accredited investors for the private placement of approximately $22 million of its common stock and warrants to support its growing solid state drive business.

In the transaction, OCZ agreed to sell approximately 7.2 million shares of its common stock at approximately $3.08, along with warrants to purchase 1.8 million additional shares at $5.25 per share. The Company agreed to file a registration statement with the Securities and Exchange Commission, registering the resale of these shares and the shares underlying the warrants following the close of the transaction.

"OCZ continues to experience rapid growth globally in multiple markets with the introduction of innovative solid state products that change the very way clients architect their systems," said Ryan Petersen, President and Chief Executive Officer of OCZ Technology Group. "This new funding will accelerate our technology development and expand our Enterprise and OEM SSD solution portfolio."

Mr. Petersen further commented: "We are pleased that OCZ has received commitments to raise $22 million of growth capital from such an esteemed group of investors. And, to do so at an ‘at market’ price, is not only gratifying but reflective of the opportunities for OCZ and its shareholders."

Mr. Petersen concluded: "With the funding, OCZ will be in a financial position to more than double its SSD revenues over the next year, increase its gross product margins, and support future enterprise OEM opportunities."

Merriman Capital, Inc., a wholly-owned subsidiary of Merriman Holdings, Inc., acted as the exclusive placement agent for the transaction.