Navitas Makes $5M Strategic Investment in Magnachip at $3.42/Share
MX sits 50% above its 52-week low of $2.18 on elevated volume (3.6× avg).
Summary
Navitas Semiconductor agreed to invest $5 million in Magnachip at $3.42 per share, deepening their July strategic partnership. The deal involves issuing about 1.46 million shares, expected to close around Sept. 24. Magnachip shares jumped 16.36% to $3.44 on the news, with volume more than double the 100-day average. The investment aligns the two companies on silicon carbide technology for high-voltage power markets, with Magnachip licensing Navitas' GeneSiC technology and gaining access to its SiC supply chain. This follows the Q2 10-Q showing cash reserves of $87.9M and a $25.9M term loan, so the $5M infusion is modest but strategically significant.
At the time of this announcement, MX was trading at $3.26 on NYSE in the Technology sector, with a market capitalization of approximately $118.9M. The 52-week trading range was $2.18 to $9.86. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Benzinga.