Wave Computing Files for Chapter 11 Protection

SANTA CLARA, Calif., April 28, 2020 /PRNewswire/ -- Wave Computing, Inc. ("Wave" or "the Company"), the processor technology company focused on the fields of AI and deep learning, along with its subsidiaries, today announced that it has filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of California, San Jose Division. The bankruptcy process will allow the Company to restructure its liabilities and position the business for long-term growth.

Wave has arranged for Debtor-in-Possession ("DIP") financing from an affiliate of Tallwood Venture Capital totaling approximately $27.9 million, which provides the business sufficient liquidity to continue regular business operations through the bankruptcy process.

Wave expects no disruption to existing customers and will continue to offer the same level of service and maintenance and continue to protect its IP during the Chapter 11 process. All existing management remains in place.

Wave also announced it has appointed Lawrence Perkins of SierraConstellation Partners as Chief Restructuring Officer and Thomas FitzGerald as an independent board director. Mr. Perkins will lead, manage and oversee the Company's restructuring process with the assistance of Wave's management team, all of whom remain in their current roles. Mr. FitzGerald is an experienced board director who has spent over three decades in corporate leadership roles, including guiding companies through restructurings.

"After extensive consultations and discussions with the board, creditors and advisers, we determined that restructuring Wave Computing through the Chapter 11 process was the best and most efficient way to ensure the business has the financial flexibility to pursue further commercialization of our technology and grow over the long term," said Mr. Perkins. "Today's actions combined with recent efforts to focus Wave's strategy will yield a fundamentally stronger business upon emergence from Chapter 11 with a promising strategy for our unique dataflow technology and intellectual property assets. I am deeply grateful for the Wave team, who are continuing to deliver for our customers."

Wave has filed a series of customary "first day" motions with the Bankruptcy Court. When granted, these motions will enable day-to-day operations, regular payment of employee wages and benefits, and payment to key vendors for goods and services provided on or after the filing date to continue as usual.

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

Sam Newman of Sidley Austin LLP is serving as legal counsel to Wave Computing, and SierraConstellation Partners is serving as financial and restructuring adviser.

About Wave Computing and MIPS Technologies

Wave Computing, Inc. is the processor technology company focused on revolutionizing the fields of AI and deep learning through its dataflow-based systems. Wave's vision is to bring deep learning to customers' data wherever it may be--from the datacenter to the edge. The processor architecture developed by Wave has a wide variety of applications which are becoming increasingly commercialized, including voice recognition software, document analysis, chat bots and autonomous vehicles. Wave was founded in 2010 in Santa Clara, Calif. and has 3 offices around the globe. 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.

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, including the DIP Financing; (vi) renewal of the Company's current customer, supplier and other material agreements; and (vi) future liquidity, working capital, and capital requirements. Forward-looking statements.

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 Contacts

Andrew Merrill / Kris Cole
Prosek Partners for Wave Computing, Inc.
(310) 652-1411

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SOURCE Wave Computing, Inc.