Java processor manufacturer Patriot Scientific Corp has raised up to $5m over three years through a share issue to Swartz Private Equity LLC. The money will mostly be spent on sales and marketing efforts, but also on development of its PSC1000 Java processor and its line of ISDN hardware. The San Diego-based company will hire new sales personnel, as well as increasing the promotional budget and will also expand its network of international distributors. The company does not yet know how many shares will be issued, as the number depends on the share price at the time of issue – if the price rises considerably, it will need to issue fewer shares. It is still awaiting authorization from the SEC for the finance agreement. Swartz is an existing investor in Patriot. At the end of its fiscal second quarter on November 30 1998, Patriot’s cash and equivalents had fallen to just $39,355, with $563,000 being burned off in the six months up to that point. á
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