Ceragon CEO Ira Palati
Wireless backhaul developer Ceragon Networks Ltd. (Nasdaq: CRNT; TASE:CRNT) plans to raise $39 million in a secondary offering on Nasdaq. In contrast to the usual practice of holding secondary offerings when a share price is at a high, Ceragon is holding its offering when its share price is at a five year low.Ceragon’s share price fell 5.2% to $2.74 in premarket trading on Nasdaq today, after falling 2.4% yesterday. The share price fell 6.5% by mid-afternoon on the TASE today. Its market cap is $106 million.
Ceragon said that it would to use the net proceeds from the offering for general corporate purposes. Last week, the company announced a streamlining plan that includes 200 layoffs, including 60 employees in Israel, in order to save $25 million a year. The company also published weak results for the third quarter, although it predicts recovery in the second half of 2014 as carriers switch to 4G LTE networks.
Needham & Company is the lead book-running manager with Oppenheimer & Co. Inc. is co-book runner for the offering.
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