The Channel logo

News

By | Chris Mellor 22nd February 2010 13:19

Overland's Nasdaq market cap gap trap map

$12m extra funding shows the route out of trouble

Back from the dead? It's a little too soon to say, but Overland Storage - threatened with costly ejection by Nasdaq because its market capitalisation was under $15m - has got a $12m stock issue to put that threat into touch.

It's not a done Nasdaq deal yet, but the outcome seems pretty certain. CEO and president Eric Kelly said the investors bought convertible preferred stock with warrants. A current market capitalisation of $15.53m plus the extra $12m gives it a $25.5 marcap value. Kelly said: "If we're above the $15m limit for ten days, the deficiency goes away."

The new investors believe in what Kelly and his new team are doing with Overland, and this news will help turn sentiment about the company's future in a positive direction. It has recently announced much improved results with diminished losses, and added an iSCSI SAN product to its Snap Server filer line.

Both Dell and HP have recently said that their respective iSCSI SAN product lines are doing extremely well, and Overland aims to capitalise on the iSCSI storage boom.

Overland has escaped Nasdaq ejection before, with a reverse stock split increasing share trading values above a Nasdaq limit. The new funding gives Overland the ability to focus more on getting its business back into profit. It's aiming to recruit a new chief technology officer and VP of engineering, and further develop its disk-based product line.

This is Overland's second funding initiative in four months, with a total of $16m brought in - the firm now being more quick than dead. If and when it reports a quarterly profit, then Kelly's team will have accomplished a bit of a miracle. ®

comment icon Read 3 comments on this article alert Send corrections

Opinion

Woman cuddles 'sly-looking' Fennec fox. Photo by Shutterstock
Cartoon of employee asking wky boss makes hium wear suspenders (while pincer through open trapdoor remains poised above his head) illustration by Cartoon resource for Shutterstock

Frank Jennings

It's not like my boss painstakingly nurtured the contacts, right?

Features

Girl and computer, photo via Shutterstock
Middle-class terror of engineering also part of problem
Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world