Company expects to exit bankruptcy in January 2021 pending creditor and court approval of Tallwood-led reorganization plan

SANTA CLARA, Calif., Dec. 28, 2020 — (PRNewswire) —  Wave Computing, Inc. ("Wave" or "the Company"), the processor technology company focused on the commercialization of RISC processor architectures and IP cores, and its subsidiaries including MIPS Tech, today announced that the Company has reached an agreement with its secured lender Tallwood Technology Partners, LLC ("Tallwood") to restructure the Company's current capital structure and provide substantial recovery to the Company's unsecured creditors via amendments to the Company's proposed Chapter 11 plan of reorganization. The Company commenced an auction on December 21, 2020 seeking the highest or otherwise best offer to restructure or purchase the Company's business, and, after improving its initial restructuring bid by nearly $10 million, Tallwood was identified as the successful bidder the next day.

The conclusion of the auction and decision to move forward with the Tallwood restructuring moves Wave's Chapter 11 cases a large step toward conclusion. Wave initiated its restructuring in April 2020 and has since run a thorough marketing process. The restructuring will allow Wave to refocus its business around the continued commercialization of the Company's storied MIPS architectures, and position itself for sustainable long-term growth. The restructuring is expected to generate a high recovery for the Company's creditors, and represents a strong outcome for all the Company's stakeholders.

The restructuring proposal will be submitted to creditors for a vote and presented to the U.S. Bankruptcy Court for the Northern District of California for approval in early 2021, and if approved, will allow the Company to emerge from Chapter 11 protection shortly thereafter.

"We are pleased to find a partner in Tallwood that will be able to further develop Wave's landmark MIPS architectures," said Larry Perkins, Chief Restructuring Officer of Wave Computing. "We hope Tallwood's stewardship will allow Wave's groundbreaking technology to continue to transform the processor landscape and benefit a range of new customers. I'm thankful for the entire team at Wave, who have worked so hard throughout the Chapter 11 process to put the Company on the path to future success."

"Following productive discussions with all of our stakeholders, we are confident the Company's path forward under Tallwood ownership is a strong strategic fit as well as a successful financial outcome," said Tom FitzGerald, independent director of Wave Computing. "We believe this transaction represents the best possible conclusion to the Chapter 11 process for the Company as well as its employees, creditors, and customers."

Additional information on the Chapter 11 process, including court filings and documents, is available through Wave's claims administrator, Donlin Recano, at www.donlinrecano.com/wavecomp.

A team from Sidley Austin LLP led by Sam Newman is serving as legal counsel to Wave, SierraConstellation Partners is serving as financial and restructuring adviser, and Armory Securities is serving as investment banker. Binder & Malter LLP is serving as legal counsel to Tallwood.

About Wave Computing and MIPS Technologies

Wave Computing, Inc. is the processor technology company focused on the commercialization of RISC processor architectures and IP cores. Wave was founded in 2010 in Santa Clara, Calif. More information about Wave Computing can be found at  https://wavecomp.ai.

MIPS Technologies, a subsidiary of Wave, is a leading provider of RISC processor architectures and IP cores that drive some of the world's most popular products. With the streamlined MIPS RISC architecture and CPU cores, semiconductor designers can create efficient, scalable and trusted products across a wide range of performance points – from the IoT Edge to high-end networking equipment, and everything in between.

About Tallwood

Tallwood Venture Capital focuses on investments in differentiated technologies and products in the semiconductor industry. By offering deep semiconductor knowledge, direct operating experience and a high degree of availability, Tallwood builds close, active working relationships with its portfolio companies.

Forward-Looking Statements

Certain information set forth in this press release contains "forward-looking information", including "future oriented financial information" and "financial outlook", under applicable securities laws (collectively referred to herein as forward-looking statements). Except for statements of historical fact, information contained herein constitutes forward-looking statements and includes, but is not limited to, the (i) projected financial performance of the Company; (ii) Company's bankruptcy proceeding; (iii) the expected development of the Company's business, projects and joint ventures; (iv) execution of the Company's vision and growth strategy; (v) sources and availability of third-party financing; (vi) renewal of the Company's current customer, supplier and other material agreements; and (vi) future liquidity, working capital, and capital requirements.

These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements.

Although forward-looking statements contained in this press release are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

Media Contact:
John Perilli
Prosek Partners for Wave Computing, Inc.
(401) 316-3375
pro-wavecomp@prosek.com 

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SOURCE Wave Computing, Inc.

Contact:

Company Name: Wave Computing, Inc., Tallwood Venture Capital Web: https://wavecomp.ai