ParkerVision Could Continue Lower After Its Completed Stock Sale

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ParkerVision, Inc. (NASDAQ:PRKR) has been experiencing a high degree of volatility over the past year. ParkerVision is a developer and marketer of semiconductor technology used in wireless communication products. The stock had a 52-week range between $1.84 and $8.18, as of Thursday, March 9, 2017. Despite falling 13.88% on Thursday, the stock was still up 13.62% over the past five trading sessions and 12.56% over the past month. PRKR has been down 8.64%, while the semiconductors have been up 41.42%, over the past year.

Here’s a look at ParkerVision’s performance since early January 2017:

ParkerVision

Source: TradingView

Notice how ParkerVision spiked higher on March 8, 2017. This was primarily due to a favorable rulings. The Patent Trial and Appeal Board rejected Qualcomm’s request for institution on three IPR challenges to a PRKR Patent.

On March 10, the company announced its completion of sale of common stock, pursuant to an At Market Issuance Sales Agreement. That in mind, market participants generally view this to be a dilutive measure, which could push shares lower. The ownership interest would be diluted to the extent of the difference between price paid per common stock share in the offering and the net tangible book value per common share after the offering.

ParkerVision Common Stock Sale Under ATM Agreement

ParkerVision entered into an At Market Issuance Sales Agreement, known as ATM agreement, in December 2016. The company filed an SEC Form 8-K in December 2016 stating it entered into the ATM Agreement with FBR Capital Markets & Co., pursuant to which PRKR could sell shares of its company stock with a par value of 1 cent per share. This would have an aggregate offering price of up to $10M, through FBR.

According to ParkerVision in its prospectus supplement“We intend to use the net proceeds from the sale of the shares in this offering to fund our research and development, our sales and marketing activities, and for other working capital and general corporate purposes. We have not identified the amounts we will spend on any specific purpose.”

The company went on to state, The amounts actually expended for any purpose may vary significantly depending upon numerous factors, including assessments of potential market opportunities and competitive developments. Pending use of the net proceeds of this offering, we intend to invest the net proceeds in accordance with our investment policy guidelines, which currently provide for investment of funds in cash equivalents, money market funds and U.S. government obligations.”

ParkerVision Completed $10M Common Stock Sale Under ATM

On March 10 2017, ParkerVision announced its completion of its common stock sale of approximately 4.1M shares at an average price of $2.46 per share. This would amount to an aggregate gross proceed of $10M, pursuant to the ATM Agreement.

According to ParkerVision CEO Jeffrey Parker, “The funds raised from the ATM Agreement provide us with the flexibility and financial pathway to achieve our strategic objectives.  We are well-positioned to successfully launch our new Wi-Fi product line that we believe will have broad appeal to a significant consumer market. Our patented RF energy sampling down conversion technology, which has been broadly deployed in other wireless devices, enables us to offer very competitive products in the residential Wi-Fi market.”

The Bottom Line

ParkerVision had some mixed news this week, and its completion of its $10M common stock sale under ATM. According to Yahoo Finance, the company had shares outstanding of 13.18M and float of 11.39M. I’m keeping an eye on this one for any developing news regarding SEC filings or court rulings.

 

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