Research Frontiers Inc. (Nasdaq: REFR) and Israel-based material
science company Gauzy Ltd. announced today that Gauzy’s second
production facility in Stuttgart, Germany is on schedule to produce
SPD-Smart light control film for the entire SPD-SmartGlass industry
this summer, and that an additional equity investment of $4.6
million has been made in Research Frontiers by Gauzy and a group of
existing investors.
In September 2018, Gauzy led a $2 million
investment in Research Frontiers by it and other investors. At that
time it was announced that Gauzy had been granted warrants in
connection with that investment as well as the right until July 31
to do an additional $1 million follow-on investment at a
pre-determined price range which was capped at 150% of the market
price at the time of Gauzy’s initial investment. Gauzy
elected to exercise these rights early, and as a result of its
investments in Research Frontiers and the exercise of all of its
previously issued warrants, Gauzy now owns 6.9% of the outstanding
common stock of Research Frontiers, making it Research Frontiers
second largest shareholder.
As part of the new investment, Gauzy received
724,638 shares of common stock of Research Frontiers, and warrants
to purchase 362,319 shares common stock. At the same time as the
investment made by Gauzy, a small group of existing shareholders of
Research Frontiers invested $3.6 million at $2.82 per share
(representing a slight premium to the closing price of Research
Frontiers stock at the time of investment) and received 1,276,599
shares of Research Frontiers common stock and warrants to purchase
an additional 638,295 shares of common stock at prices ranging
between $3.38 and $4.24 per share depending upon the date of
exercise of the warrants.
The shares purchased by Gauzy are subject to a
one year lock-up period with incentives including certain
standstill and other exclusive rights, with the further possibility
of an additional lock-up period through July 31, 2023. The shares
issued to the other investors in the group are not subject to a
similar lock-up and will be covered by the company’s existing shelf
registration statement on Form S-3. The warrants issued to Gauzy
and the other investors give the warrant holders the five-year
right to purchase additional shares of Research Frontiers common
stock at exercise prices equal to 120% of the subscription price
for the first year, 130% of the subscription price for the second
year, and 150% of the subscription price for the final three years
of the warrants.
“We have seen strong order strength for the
SPD-Smart light-control film and have invested millions of euros to
build this second state-of-the-art facility in Stuttgart that has
the capacity to coat over one million square meters of SPD film per
year” noted Eyal Peso, CEO of Gauzy. “In addition to this
production site, we have also expanded our R&D and production
facilities, allowing us the ability to scale up the production of
SPD particles and emulsions to meet the high levels of demand we
are receiving. We appreciate the strong marketing and other efforts
by Research Frontiers and our customers to help grow this demand,
and the deep pipeline of SPD-Smart products, especially in the
automotive, aircraft, marine and architectural industries. Our
additional investment in Research Frontiers further strengthens the
ties between our two companies and benefits our customers and the
entire SPD-SmartGlass industry.”
SPD-Smart light control film, invented and
patented by Research Frontiers, is a key component in
SPD-SmartGlass products. This film allows users to instantly,
precisely and uniformly control the shading of glass or plastic
products, either manually or automatically. Products using Research
Frontiers’ smart glass technology are being used in tens of
thousands of cars, aircraft, yachts, trains, homes, offices,
museums and other buildings.
Joseph M. Harary, President of Research
Frontiers noted: “The additional $4.6 million invested by Gauzy and
the other investors further strengthens Research Frontiers
debt-free balance sheet and provides additional resources to
continue our successful growth as the market leader in smart window
technology. We have a close and highly-effective relationship with
Gauzy, and working together we have transformed the smart glass
industry to deliver the best performing smart window technology to
various high-volume industries. Earlier this month we spoke about
the deep pipeline of new car models in the automotive industry
working with SPD-SmartGlass technology. With the start of
production of wider SPD-Smart light control film in Gauzy’s new
Stuttgart factory this summer, we also expect this growth to expand
to the architectural market for SPD-SmartGlass.”
The markets for SPD-Smart film are already
well-established. Research Frontiers has licensed over 40 chemical,
film, and glass companies which are selling products for the
automotive, aircraft, marine, train, museum, train and consumer
electronics industries. Gauzy’s established and growing network of
over 55 glass fabricators worldwide brings additional synergies,
infrastructure, and growth opportunities to the smart glass
industry.
Research Frontiers patented SPD-SmartGlass
technology is the same best-selling smart window technology that
can be found on various car models from Daimler, McLaren
Automotive, and other auto makers. The MAGIC SKY CONTROL feature,
which is now in use on tens of thousands of Mercedes-Benz SLs,
SLC/SLKs, Maybach and S-Class models around the world, and more
recently on four announced McLaren models, uses patented
SPD-SmartGlass technology developed by Research Frontiers to turn
the roof transparent by electrically aligning tiny particles in a
thin film within the glass. With the touch of a button, drivers and
passengers can instantly change the tint of their roof to help keep
out harsh sunlight and heat, and create an open-air feeling even
when the sunroof is closed. Glass or plastic using Research
Frontiers’ patented SPD-SmartGlass technology effectively blocks UV
and infrared rays in both clear and darkly tinted modes, helping
keep the cabin cooler, and protecting passengers and interiors
while also enhancing security inside the vehicle. These benefits
become even more important when a car uses large surface areas of
glass, especially in warm climates.
Some of the other benefits of SPD-SmartGlass
include significant heat reduction inside the vehicle (by up to
18ºF/10ºC), UV protection, glare control, reduced noise and reduced
fuel consumption. Independent calculations also show that use of
SPD-SmartGlass can reduce CO2 emissions by four grams per
kilometer, and increase the driving range of electric vehicles by
approximately 5.5 percent.
Shortly after its introduction into serial
production in the automotive industry, SPD-SmartGlass has become
standard equipment on many different aircraft, and is also used in
residential and commercial architectural applications, in trains,
yachts and other marine vehicles, in display applications, and to
protect light-sensitive artwork and documents in major museums
around the world.
Gauzy is currently focused on LCG® (Light
Control Glass) technology, including Liquid Crystal formulations
and SPD-SmartGlass emulsions. The company has a dedicated
R&D team that focuses on each technology, multiple
laboratories, and an on-site production line with custom machinery
for high quality products with on time delivery. Through strategic
partnerships with certified partners, Gauzy’s distribution network
ranges over 40 countries. Gauzy’s technology offers diverse
applications to the glass industry including solar/energy control,
shading, privacy, and transparent displays. Gauzy LCG® is featured
in notable projects worldwide, including automotive collaborations
with leading OEMs and Tier 1 suppliers, hotels, corporate offices,
luxury residences, retail chains and consumer electronics.
About Gauzy Ltd.
Gauzy is a world leader and vendor of material
science and nanotechnology, focused on the research, development,
manufacturing, and marketing of technologies which are embedded
into and onto raw materials. Amongst Gauzy’s core areas of
expertise are Liquid Crystals and SPD, which are used to produce
LCG® (Light Control Glass). The company is headquartered in Tel
Aviv Israel, with additional offices in Germany, China and
multiple US cities. Learn more at www.gauzy.com.
About Research Frontiers Inc.
Research Frontiers (Nasdaq: REFR) is a publicly
traded technology company and the developer of patented SPD-Smart
light-control film technology which allows users to instantly,
precisely and uniformly control the shading of glass or plastic
products, either manually or automatically. Research Frontiers has
licensed its smart glass technology to over 40 companies that
include well known chemical, material science and glass companies.
Products using Research Frontiers’ smart glass technology are being
used in tens of thousands of cars, aircraft, yachts, trains, homes,
offices, museums and other buildings. For more information, please
visit our website at www.SmartGlass.com, and on Facebook, Twitter,
LinkedIn and YouTube.
Note: From time to time Research Frontiers may
issue forward-looking statements which involve risks and
uncertainties. This press release contains forward-looking
statements. Actual results, especially those reliant on activities
by third parties, could differ and are not guaranteed. Any
forward-looking statements should be considered accordingly.
"SPD-Smart" and “SPD-SmartGlass” are trademarks of Research
Frontiers Inc. “MAGIC SKY CONTROL” and car model designations
Mercedes-Benz, SL, SLK, SLC, Maybach and S-Class are trademarks of
Daimler AG. LCG® (Light Control Glass) is a trademark of Gauzy
Ltd.
For further information, please contact:
Eyal Peso Founder and CEO Gauzy Ltd. +972-72-2500385
info@gauzy.com
Brittany Kleiman Swisa Media & Marketing Contact Gauzy Ltd.
+972-72-2500385brittany@gauzy.com
Joseph M. Harary President and CEO Research Frontiers Inc.
+1-516-364-1902Info@SmartGlass.com
Research Frontiers (NASDAQ:REFR)
Historical Stock Chart
From Aug 2024 to Sep 2024
Research Frontiers (NASDAQ:REFR)
Historical Stock Chart
From Sep 2023 to Sep 2024