TranSwitch Corp. (NasdaqCM:TXCC) announced a private placement of 9,803,921 common shares at $0.255 per share for gross proceeds of $2,500,000 with existing accredited investor Ilex Partners, L.L.C on August 16, 2013. The company will issue securities pursuant to exemption provided under Regulation D. The company also granted a right to purchase an additional of 9,800,000 shares of the company for a period ending on the earlier of 180 days or one business day prior to the occurrence of a change of control event for gross proceeds of $2,500,000. All reasonable expenses, other than underwriting discounts and commissions, incurred in connection with transaction, including, all registration, listing and qualifications fees, printers and accounting fees, FINRA filing fees and fees and disbursements of counsel for the company will be paid by the company amount will be limited to $8,000. In the event that the closing shall not have occurred with respect to the buyer within 15 business days of the date, then the investor shall have the right to terminate its obligations under this agreement. Timothy C. Maguire of Pierce Atwood LLP will act as legal advisor to the company.

On August 21, 2013, TranSwitch Corp. closed the transaction.