Newport Beach-based chipmaker Conexant Systems Inc. said Monday it is seeking approval from the Securities and Exchange Commission to sell $20 million worth of its shares.
Conexant is looking to do a “shelf offering,” which would give the company standing approval to sell a set amount of shares whenever it wants.
It would also allow Conexant to sell warrants, or debt that converts to stock.
The chipmaker’s shares closed down more than 2% Monday on a market value of about $65 million.
Investors typically don’t like shelf offerings because they add more stock to the company’s outstanding shares and dilute their value.
Conexant said it intends to use money raised from the stock and debt sales for repaying or repurchasing debt, capital expenses and acquisitions, the company said.
Conexant had about $110 million in cash at the end of the March quarter.
The company’s shares are off more than 70% in the past year.
