Alliance Semiconductor Corporation (ALSC) announces that since October 30, 2012 it has sold 580 units of AMBAC preferred shares that it has received as a result of the forced conversion of Auction Rate securities guaranteed by AMBAC Assurance. Alliance sold these units at prices ranging from .21 to .375 of the face value ($25,000) of the units. Proceeds from the sales total $4, 672,500.
Alliance plans to continue its participation in the lawsuit against AMBAC Assurance Corporation alleging that AMBAC Assurance wrongfully converted the original securities purchased by ALSC into AMBAC preferred shares. Alliance may from time to time continue to sell AMBAC securities if market conditions are favorable.
Alliance is in the process of completing a 382 study to understand the status of its net operating losses (NOLs). Under the Section 382 rules, a change in ownership can occur whenever there is a shift in ownership by more than 50 percentage points by one or more five-percent shareholders within a three-year period.
When a change of ownership is triggered, the NOLs may be impaired. In order to continue to protect this NOL asset, Alliance is requesting that all of its investors directly contact the company’s investor relations department prior to allowing their ownership interest to approach a five percent level. All shareholders holding five per cent or greater should also notify the company before purchasing additional shares.