Netlist announces $10 million registered direct offering

IRVINE, CA - Netlist, Inc. (OTCQB:NLST), a $304 million market cap technology company that has seen its stock rise nearly 30% year-to-date, announced Monday it has entered into a definitive agreement to sell 14,285,716 shares of its common stock along with warrants to purchase up to 28,571,432 additional shares in a registered direct offering. According to InvestingPro analysis, the stock appears slightly undervalued at current levels.

The combined purchase price is set at $0.70 per share and accompanying warrants, with investors receiving warrants to purchase up to two additional shares for each share purchased. The warrants will have an exercise price of $0.70 per share, be immediately exercisable, and expire five years after issuance. Notably, analysts tracked by InvestingPro maintain a $2.00 price target for the stock, suggesting significant potential upside from current levels.

The offering, expected to close on or about Tuesday, is anticipated to generate approximately $10 million in gross proceeds before deducting placement agent fees and other expenses. Roth Capital Partners is serving as the exclusive placement agent for the transaction.

Netlist plans to use the net proceeds for general corporate purposes, including working capital, according to the company’s press release.

In connection with the offering, Netlist also entered into agreements with holders of warrants previously issued in June 2025, reducing their exercise price to the lesser of $0.60 or the lowest VWAP of common stock during a specified trading period.

The offering is being made through a shelf registration statement filed with the SEC in July 2024 and declared effective in August 2024.

Netlist describes itself as an innovator in advanced memory and storage solutions with a portfolio of patented technologies focused on AI computing advancements. The company has demonstrated strong revenue growth of 18% in the last twelve months, though InvestingPro data shows its overall Financial Health Score remains FAIR. For deeper insights into Netlist’s financial metrics and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Netlist, Inc. has initiated a legal action against Samsung, Micron, and their distributor Avnet, Inc. in the U.S. District Court for the Eastern District of Texas. The lawsuit alleges that these companies have infringed on U.S. Patent No. 12,373,366, which is related to power management circuitry used in DDR5 DIMM memory products. This patent is set to expire in June 2028. Additionally, Netlist has amended its patent infringement complaints to include a second patent, U.S. Patent No. 10,025,731, alongside the original U.S. Patent No. 12,308,087. These amendments also target the defendants’ DDR5 DIMM products and High-Bandwidth Memory products. The legal actions underscore ongoing disputes over patent rights in the memory technology sector. These developments are part of Netlist’s broader strategy to protect its intellectual property.

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