EDISON EQUITY RESEARCH: THIN FILM ELECTRONICS: ADR UPDATE - NEW FUNDING AND MASS-MARKET MOVES

Thinfilm has secured $42m in new funding from Woodford, which has agreed to acquire 17.8% of the shares. The company has also announced two NFC OpenSense deals: an exclusive partnership to deliver the technology to clients of Arc, a shopper marketing agency within Leo Burnett, and a collaboration with Constantia Flexibles, a leading manufacturer of flexible packaging and labels. These deals further underpin our expectation of substantially increased order volumes for NFC OpenSense from H216, not only in security-conscious areas such as pharma and beverages, but also across the broader consumer spectrum. If realized, we see considerable upside potential for the earnings outlook and valuation, especially now that financing is assured for the year ahead.

Thin Film Electronics (Thinfilm) commercializes printed electronics and owns key patents for printing rewritable, non-volatile memory and printable NFC circuits. It also licenses technology from others to develop complete printed systems.

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