Santa Clara (CA) - Transmeta is taking additional to secure financing for the remainder of this year. The company today announced that it will be offering to sell securities to selected institutional investors for an aggregate price of $12,800,000.

The offering includes up to 2,000,000 shares of Transmeta common stock and warrants to purchase up to 1,000,000 shares of Transmeta common stock. Securities are priced at $6.40 per share and includes a "warrant" to purchase 0.5 shares of Transmeta common stock at an exercise price of $9.00 per share. The offering is expected to close "on or about" September 26.

The company's stock price fell almost 17% or $1.26 to $6.29 following the announcement. The share price is close to its all-time low of $6.00, which was hit on June 6 of this year.

Transmeta has taken several steps before to make sure that it has enough cash to continue its operations until it can expect to generate licensing revenues for its Longrun 2 technology. AMD, for example, has purchased 1 million shares of Transmeta preferred stock for $7.5 million back in July. Transmeta also went through a 1:20 reverse split of its stock to ensure that it can keep its stock above the $1 level.

Transmeta's revenues for the most recent quarter were $171,000, the net loss amounted to $11.5 million. The company has announced several customers, including NEC, from whom it can expect to receive royalties as soon as products are shipping, but it remains unclear when Transmeta actually will begin receiving significant revenues.

During Q2, Transmeta continued to reduce its workforce. We were told that the company currently has 45 employees.

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