Netlist Strengthens Capital Structure With New Financing From Fortress
Financing Backed by Netlist's IP Assets; Underscores Value of High
Performance Server Memory Solutions
IRVINE, CA -- (Marketwired) -- 07/18/13 -- Netlist, Inc. (NASDAQ:
NLST), a leading provider of high performance memory solutions for
the cloud computing and storage markets, announced today that it
closed new credit financing for up to $15 million from an affiliate
of Fortress Investment Group LLC (NYSE: FIG), a leading global
investment firm. The capital is intended to support Netlist's ongoing
development of its product and patent portfolios covering next
generation server and storage systems.
"The strategic financing from Fortress underscores the untapped value
of our extensive IP portfolio," said Netlist President and CEO, C.K.
Hong. "Working with the team at Fortress, we are focused on fully
maximizing the investments we have made in our advanced memory
products and leveraging our patent portfolio to the benefit of our
"Netlist had the great foresight to invest in patenting their
innovative products," said Eran Zur, Managing Director and Head of
the Intellectual Property Finance Group at Fortress Investment Group.
"Fortress is excited to partner with Netlist to help it capitalize on
its investment in patents."
Netlist has steadily invested in and grown its IP portfolio, which
now includes 36 issued patents and more than 35 US and foreign
pending patent applications in the areas of high performance and high
density memory subsystems and hybrid memory technologies.
In conjunction with the new financing, the Company amended its loan
agreement with Silicon Valley Bank. Under the new agreement Silicon
Valley Bank will continue to provide the Company with a line of
credit and has amended the covenants under its previous agreement. A
more detailed summary of the terms of the Fortress and Silicon Valley
Bank transactions is available in the Company's Report on Form 8-K
filed concurrently with the issuance of this release.
Netlist, Inc. designs and manufactures
high-performance, logic-based memory subsystems for server and
storage applications for cloud computing. Netlist's flagship products
include HyperCloud(R), a patented memory technology that breaks
traditional performance barriers, NVvault(TM) and EXPRESSvault(TM)
family of products that significantly accelerate system performance
and provide mission critical fault tolerance, and a broad portfolio
of industrial Flash and specialty memory subsystems including VLP
(very low profile) DIMMs and Planar-X RDIMMs.
Netlist develops technology solutions for customer applications in
which high-speed, high-capacity, small form factor and efficient heat
dissipation are key requirements for system memory. These customers
include OEMs that design and build tower, rack-mounted, and blade
servers, high-performance computing clusters, engineering
workstations and telecommunications equipment. Founded in 2000,
Netlist is headquartered in Irvine, CA with manufacturing facilities
in Suzhou, People's Republic of China and an engineering design
center in Silicon Valley, CA. Learn more at www.netlist.com.
Fortress Investment Group LLC is a leading, highly
diversified global investment firm with $56 billion in assets under
management as of March 31, 2013. Founded in 1998, Fortress manages
assets on behalf of over 1,500 institutional clients and private
investors worldwide across a range of private equity, credit, liquid
hedge funds and traditional asset management strategies. Fortress is
publicly traded on the New York Stock Exchange (NYSE: FIG). For
additional information, please visit www.fortress.com.
Safe Harbor Statement:
This news release contains forward-looking
statements regarding future events and the future performance of
Netlist. These forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those expected or projected. These risks and uncertainties
include, but are not limited to, risks associated with the launch and
commercial success of our products, programs and technologies; the
success of product partnerships; continuing development,
qualification and volume production of EXPRESSvault(TM), NVvault(TM),
HyperCloud(R) and VLP Planar-X RDIMM; the timing and magnitude of the
anticipated decrease in sales to our key customer; our ability to
leverage our NVvault(TM) technology in a more diverse customer base;
the rapidly-changing nature of technology; risks associated with
intellectual property, including patent infringement litigation
against us as well as the costs and unpredictability of litigation
over infringement of our intellectual property and the possibility of
our patents being reexamined by the United States Patent and
Trademark office; volatility in the pricing of DRAM ICs and NAND;
changes in and uncertainty of customer acceptance of, and demand for,
our existing products and products under development, including
uncertainty of and/or delays in product orders and product
qualifications; delays in the Company's and its customers' product
releases and development; introductions of new products by
competitors; changes in end-user demand for technology solutions; the
Company's ability to attract and retain skilled personnel; the
Company's reliance on suppliers of critical components and vendors in
the supply chain; fluctuations in the market price of critical
components; evolving industry standards; and the political and
regulatory environment in the People's Republic of China. Other risks
and uncertainties are described in the Company's annual report on
Form 10-K filed on March 29, 2013, and subsequent filings with the
U.S. Securities and Exchange Commission made by the Company from time
to time. Except as required by law, Netlist undertakes no obligation
to publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
For more information, please contact:
Brainerd Communicators, Inc.
Corey Kinger/Mike Smargiassi
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