O’Melveny Worldwide

O’Melveny Advises Lantronix in Underwritten Offering of Common Stock

November 23, 2021


SAN FRANCISCO—November 23, 2021—O’Melveny advised Lantronix, Inc. (NASDAQ: LTRX), a global provider of secure turnkey solutions for Intelligent IT and the Internet of Things (IoT), in an underwritten public offering of 4,700,000 shares of its common stock at a price to the public of $7.50 per share. In addition, the underwriters exercised their option to purchase up to 705,000 additional shares of Lantronix’s common stock from the selling shareholder in full. The offering resulted in gross proceeds to Lantronix of $35.3 million and gross proceeds to the selling shareholder of $5.3 million.

The offering was announced November 18 and closed November 22.

Headquartered in Irvine, CA, Lantronix’s products and services dramatically simplify the creation, development, deployment and management of IoT and IT projects across robotics, automotive, wearables, video conferencing, industrial, medical, logistics, smart cities, security, retail, branch office, server room, and datacenter applications.

The O’Melveny team advising Lantronix is led by partners Ryan Coombs and Warren T. Lazarow, of counsel Loren Weber, counsel Sarah J. Levesque, and associates Mollie Yeh and Kurt Cronican.

About O’Melveny

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Brandon Jacobsen
O’Melveny & Myers LLP
+1 213 430 8024

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Lantronix issued the following press release:

Lantronix Prices Underwritten Offering of Common Stock

IRVINE, Calif., Nov. 18, 2021

Lantronix, Inc. (NASDAQ: LTRX) (“Lantronix”), a global provider of secure turnkey solutions for Intelligent IT and the Internet of Things (IoT), today announced the pricing of an underwritten public offering of 4,700,000 shares of its common stock at a price to the public of $7.50 per share.

TL Investment GmbH has granted the underwriters a 30 day option to purchase up to 705,000 shares of Lantronix’s common stock, on the same terms and conditions as the shares sold in the offering. Bernhard Bruscha, Lantronix’s founder and former Chairman of the Board, is managing director of TL Investment GmbH, and Dr. Heidi Nguyen, a current director of Lantronix and Mr. Bruscha’s spouse, is Vice President and a director of TL Investment GmbH.

The offering is expected to close on or about November 22, 2021, subject to customary closing conditions.

Total estimated gross proceeds of the offering to the Company are approximately $35.3 million. Lantronix intends to use its net proceeds from the offering for working capital and general corporate purposes, which may include, among other things, the repayment of existing indebtedness. Lantronix will not receive any of the proceeds from the shares of common stock sold by TL Investment GmbH in the offering, if any.

Canaccord Genuity and Craig-Hallum are acting as joint book-running managers for the offering.

The offering was conducted pursuant to two effective shelf registration statements (File Nos. 333-227127 and 333-259454), which were declared effective by the Securities and Exchange Commission (“SEC”) on September 12, 2018 and October 19, 2021, respectively. The offering was made only by means of a prospectus supplement and accompanying prospectuses describing the terms of the offering. Copies of the preliminary prospectus supplement and the accompanying prospectuses relating to this offering may be obtained by contacting the following: Canaccord Genuity LLC, Attention: Syndicate Department, 99 High Street, Suite 1200, Boston, Massachusetts 02110, or by telephone at (617) 371-3900, or by email at prospectus@cgf.com, or Craig-Hallum Capital Group LLC, Attention: Equity Capital Markets, 222 South Ninth Street, Suite 350, Minneapolis, Minnesota 55402, or by telephone at (612) 334-6300, or by email at prospectus@chlm.com. These documents may also be obtained for free on the SEC’s website located at http://www.sec.gov. The final terms of the offering will be disclosed in a final prospectus supplement to be filed with the SEC.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About Lantronix

Lantronix, Inc. is a global provider of secure turnkey solutions for the Internet of Things (IoT) and Remote Environment Management (REM), offering Software as a Service (SaaS), connectivity services, engineering services and intelligent hardware.

Lantronix enables its customers to accelerate time to market and increase operational up-time and efficiency by providing reliable, secure and connected Intelligent Edge IoT and Remote Management Gateway solutions.

Lantronix’s products and services dramatically simplify the creation, development, deployment and management of IoT and IT projects across Robotics, Automotive, Wearables, Video Conferencing, Industrial, Medical, Logistics, Smart Cities, Security, Retail, Branch Office, Server Room, and Datacenter applications.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the federal securities laws, which statements are subject to substantial risks and uncertainties. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this release are forward-looking statements. We have attempted to identify forward-looking statements by using words such as “may,” “believe,” “will,” “could,” “project,” “anticipate,” “expect,” “estimate,” “should,” “continue,” “potential,” “plan,” “forecasts,” “goal,” “seek,” “intend,” other forms of these words or similar words or expressions or the negative thereof. Additionally, statements concerning future matters such as the closing of our public offering and the expected use of proceeds therefrom are forward-looking statements. Completion of the proposed public offering and the terms thereof are subject to numerous factors, many of which are beyond our control, including, without limitation, market conditions, failure of customary closing conditions and the risk factors and other matters set forth in the preliminary prospectus supplement and accompanying prospectuses included in the registration statements and the documents incorporated by reference therein. You are cautioned not to place undue reliance on the forward-looking statements we make, which speak only as of the date on which they are made. We expressly disclaim any intent or obligation to update any forward-looking statements after the date hereof to conform such statements to actual results or to changes in our opinions or expectations, except as required by applicable law or the rules of The Nasdaq Capital Market. If we do update or correct any forward-looking statements, investors should not conclude that we will make additional updates or corrections.

Lantronix Investor Relations Contact:

Jeremy Whitaker

Chief Financial Officer