GCT Semiconductor Holding, Inc. (GCTS) entered into a Standby Equity Purchase Agreement (SEPA) with an affiliate of Yorkville Advisors. The agreement allows GCT to sell Yorkville up to $20 million of its equity at its discretion over 36 months. Shares will be issued at a discount to the market price.
GCT plans to use the proceeds for working capital and general corporate purposes, providing financial flexibility. The company’s stock price fell 5% today and is down 15% over the past week. Some investors may view the equity line agreement as a potential sign of financial distress.