TeleNav 2010 Annual Report Download - page 48

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Use of Proceeds
On May 13, 2010, our registration statement (No. 333-162771) on Form S-1 was declared effective for our
IPO, pursuant to which we registered the offering and sale of an aggregate of 6,550,000 shares of common stock,
at a price of $8.00 per share. Included in the above amount is the underwriter’s overallotment of 1,050,000 shares
of common stock, which overallotment was exercised on May 17, 2010. Upon the closing of the IPO, all shares
of convertible preferred stock outstanding automatically converted into 23,345,247 shares of common stock and
we issued a stock dividend of 636,139 shares of our common stock to holders of our Series E preferred stock
upon the conversion of those preferred shares into common stock. The offering, which closed on May 18, 2010,
did not terminate until after the sale of all of the shares registered on the registration statement. The managing
underwriters were J.P. Morgan Securities Inc. and Deutsche Bank Securities Inc.
As a result of the offering, we received net proceeds of approximately $44.6 million, which is comprised of
gross proceeds from shares we issued in the IPO of $52.4 million, offset by underwriting discounts and
commissions of $3.7 million and total offering costs of $4.1 million. No payments for such expenses were made
directly or indirectly to (i) any of our officers or directors or their associates, (ii) any persons owning 10% or
more of any class of our equity securities, or (iii) any of our affiliates.
We anticipate that we will use the net proceeds from the IPO for working capital and other general corporate
purposes, which may include sales and marketing expenditures, general and administrative expenditures,
developing new products and funding capital expenditures. We also may use a portion of the net proceeds to
acquire or license products, technologies or businesses we believe to be complementary. However, we do not
have agreements or commitments for any specific acquisitions at this time. We will have broad discretion in the
way we use the net proceeds. Pending use of the net proceeds as described above, we intend to invest the net
proceeds in money market funds and investment grade debt securities. There has been no material change in the
planned use of proceeds from our IPO from that described in the final prospectus filed with the SEC pursuant to
Rule 424(b).
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