LTRX - Lantronix under pressure on launching stock offering

Lantronix (NASDAQ:LTRX) trades 13.4% down after hours on commencing a proposed underwritten public offering to issue and sell shares; offer size, terms have not yet been decided. TL Investment GmbH also expects to grant the underwriters a 30-day option to purchase additional shares up to 15%. The company plans to use net proceeds or working capital and general corporate purposes, which may include, among other things, the repayment of existing indebtedness. Lantronix will not receive any of the proceeds from the shares of common stock sold by TL Investment GmbH in the offering.

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Lantronix under pressure on launching stock offering