GCT Semiconductor Raises $11 Million in Registered Direct Offering to Drive Innovation and Growth
GCT Semiconductor Holding, Inc. (NYSE: GCTS), a leading designer and supplier of advanced 5G and 4G semiconductor solutions, has announced a significant financial milestone with the completion of a registered direct offering aimed at bolstering its growth initiatives. The offering, which includes the sale of 7,006,370 shares of common stock and warrants to purchase up to 10,509,555 additional shares, is priced at $1.57 per share and accompanying warrant, raising approximately $11 million in gross proceeds before expenses.
This strategic move underscores GCT’s commitment to advancing its cutting-edge semiconductor technologies while ensuring robust working capital to support its expanding operations. The offering is expected to close on or about May 16, 2025, subject to customary closing conditions.
Key Details of the Offering
The offering includes two components:
- Common Stock: Investors will purchase 7,006,370 shares of GCT’s common stock at a price of $1.57 per share.
- Warrants: Each share purchase comes with a warrant to buy additional shares at an exercise price of $1.71 per share. These warrants will become exercisable six months after issuance and will expire five years from the initial exercise date.
Roth Capital Partners is serving as the exclusive placement agent for the offering, providing guidance and expertise to facilitate this transaction.
Strategic Use of Proceeds
The net proceeds from the offering, after deducting placement agent fees and other expenses, are earmarked for working capital and general corporate purposes. This infusion of capital will enable GCT to:
- Accelerate research and development efforts for next-generation 5G and 4G semiconductor solutions.
- Expand production capabilities to meet growing global demand for advanced connectivity technologies.
- Strengthen its financial position to pursue strategic opportunities, including potential partnerships or acquisitions.
By allocating resources toward these priorities, GCT aims to solidify its leadership in the semiconductor industry while driving innovation and delivering value to its shareholders.
Regulatory Compliance and Transparency
A shelf registration statement on Form S-3 (File No. 333-286316) related to the securities being offered was originally filed with the U.S. Securities and Exchange Commission (SEC) on April 1, 2025, and declared effective on April 9, 2025. The offering is being conducted exclusively through a prospectus supplement and the accompanying base prospectus, both of which are part of the shelf registration statement.
Investors can access the final prospectus supplement and accompanying prospectus on the SEC’s website at www.sec.gov once they are filed. Alternatively, electronic copies may be obtained by contacting Roth Capital Partners, LLC at 888 San Clemente Drive, Newport Beach, CA 92660, or via email at rothecm@roth.com.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities. Furthermore, no sale of these securities will occur in any state or jurisdiction where such an offer, solicitation, or sale would violate applicable securities laws prior to proper registration or qualification.
Why This Offering Matters for GCT Semiconductor
As a leader in advanced semiconductor solutions, GCT Semiconductor plays a pivotal role in enabling high-speed connectivity for industries ranging from telecommunications to automotive. The company’s focus on 5G and 4G technologies positions it at the forefront of the digital transformation revolution, powering innovations that drive economic growth and enhance quality of life.
However, innovation requires investment. By raising $11 million through this registered direct offering, GCT ensures it has the financial flexibility to invest in cutting-edge R&D, scale its operations, and maintain its competitive edge in a rapidly evolving market. The inclusion of warrants also provides investors with an opportunity to participate in the company’s future growth, aligning their interests with GCT’s long-term success.
A Strategic Move in a Competitive Market
The semiconductor industry is characterized by intense competition and rapid technological advancements. To stay ahead, companies must continuously innovate while managing costs and operational efficiencies. GCT’s decision to pursue this offering reflects its proactive approach to addressing these challenges.
With the proceeds from this offering, GCT is well-positioned to capitalize on emerging opportunities in the 5G ecosystem, which is expected to play a transformative role in industries such as smart cities, autonomous vehicles, and IoT (Internet of Things). Additionally, the company’s focus on 4G solutions ensures it remains a key player in regions where 4G networks continue to dominate.
About GCT Semiconductor
GCT Semiconductor is a leading fabless designer and supplier of advanced 5G and 4G LTE semiconductor solutions. GCT’s market-proven solutions have enabled fast and reliable 4G LTE connectivity to numerous commercial devices such as CPEs, mobile hotspots, routers, M2M applications, smartphones, etc., for the world’s top wireless carriers. GCT’s system-on-chip solutions integrate radio frequency, baseband modem and digital signal processing functions, therefore offering complete 4G and 5G platform solutions with small form factors, low power consumption, high performance, high reliability, and cost-effectiveness. For more information, visit www.gctsemi.com.
