8-KMaterial AgreementsOther EventsExhibits & Filings

ADVANCED MICRO DEVICES INC 8-K Report, Material Agreement (Nov 16, 2007)

Filed November 16, 2007For Securities:AMD

Summary

This Form 8-K filing by Advanced Micro Devices, Inc. (AMD) on November 16, 2007, reports on a significant capital-raising event. The company entered into a stock purchase agreement on November 15, 2007, to sell 49 million shares of its common stock to West Coast Hitech L.P. for an aggregate purchase price of approximately $607.68 million, after accounting for an expense reimbursement. This transaction represents a substantial influx of capital for AMD, which investors should consider in the context of the company's financial position and strategic initiatives at the time. The filing details the agreement and announces the closing of these transactions via an attached press release, indicating the funds are secured and the shares have been issued.

Key Highlights

  • 1AMD entered into a stock purchase agreement on November 15, 2007.
  • 2The agreement involved the sale of 49,000,000 shares of common stock.
  • 3The purchaser was West Coast Hitech L.P.
  • 4The aggregate purchase price was $622,300,000, less an expense reimbursement of $14,624,050, resulting in net proceeds of approximately $607.68 million.
  • 5This transaction effectively raised a significant amount of capital for the company.
  • 6The filing announces the closing of these transactions via a press release dated November 16, 2007.
  • 7The company is headquartered in Sunnyvale, California.

Frequently Asked Questions

While the filing itself does not state the specific reasons for the stock sale, large stock issuances are typically done to raise capital for various purposes such as funding operations, research and development, acquisitions, or to strengthen the balance sheet. Investors should look for subsequent company communications or financial reports for more context on the use of these funds.

The filing identifies West Coast Hitech L.P. as the purchaser, an exempted limited partnership organized under the laws of the Cayman Islands. The filing does not provide details about the purchaser's identity beyond this or their specific motivations for the investment.

The sale of 49 million new shares will dilute the ownership percentage of existing shareholders. For example, if the total number of outstanding shares before this issuance was X, existing shareholders will now own a smaller fraction of the company. The net capital raised could also positively impact the company's future performance, potentially offsetting the dilution effect over time.

The 8-K filing indicates the agreement was made on November 15, 2007, and a press release on November 16, 2007, announced the closing of the transactions. This suggests the funds were likely received around the closing date of November 15th or 16th, 2007.