Resonant Completes $7 million Private Placement
June 18 2013 - 7:05AM
Superconductor Technologies Inc. (STI) (Nasdaq:SCON), a world
leader in the development and production of high temperature
superconducting (HTS) materials and associated technologies,
announced Resonant Inc., an STI spin-out, raised $7 million in a
private placement exclusive of STI. Resonant was spun-out in July
2012 to leverage Reconfigurable Resonance™ (RcR) technology
developed by STI for advanced wireless applications. This funding
enables Resonant to continue to commercialize RcR technology for
the rapidly growing mobile communications industry. After this June
2013 investment, Resonant's management and new investors own the
majority of equity and equity equivalents, and STI holds a
convertible note that represents a minority of Resonant's fully
diluted equity.
"Over many years, STI has developed a rich intellectual property
(IP) portfolio," stated Jeff Quiram, STI's president and chief
executive officer. "STI remains highly focused on our 2G HTS wire
program and will also continue to pursue alternatives to extract
value on the deep reservoir of our IP unrelated to our wire. In the
spin out, STI contributed patents to Resonant to form a company to
assist mobile device manufacturers as they struggled to keep up
with the explosion of mobile data demand from next generation
mobile devices."
"In the past year, this data tidal wave has only accelerated.
Under the leadership of the Resonant management team, the RcR
technology has been successfully advanced. We believe the patented
technology and highly specialized technical team can address these
issues with unique, disruptive solutions. Others agree and
additional sophisticated investors have validated the Resonant
business model and progress. We are pleased our shareholders are
positioned to enjoy the value being created by Resonant," concluded
Quiram.
About Resonant & STI Relationship
In February 2012, STI signed a product development agreement
with a global leader in mobile communications products to bring to
market RcR technology by extending its world-leading expertise in
radio frequency analog passive circuit design and active analog
circuitry. In July 2012, STI contributed a group of patents and
related technology to Resonant LLC (now wholly owned by Resonant
Inc.), and two STI employees joined Resonant as key members of the
management team. Resonant was founded as a company separate from
STI and is controlled by its own board and
management.
About Superconductor Technologies Inc.
(STI)
Superconductor Technologies Inc., headquartered in Austin, TX,
has been a world leader in HTS materials since 1987, developing
more than 100 patents as well as proprietary trade secrets and
manufacturing expertise. For more than a decade, STI has been
providing innovative interference elimination and network
enhancement solutions to the commercial wireless industry. The
company is currently leveraging its key enabling technologies,
including RF filtering, HTS materials and cryogenics to develop
energy efficient, cost-effective and high performance second
generation (2G) HTS wire for existing and emerging power
applications, to develop applications for advanced RF wireless
solutions and innovative adaptive filtering, and for government
R&D. Superconductor Technologies Inc.'s common stock is
listed on the NASDAQ Capital Market under the ticker symbol "SCON."
For more information about STI, please visit
http://www.suptech.com.
Safe Harbor Statement
Statements in this press release regarding our business that are
not historical facts are "forward-looking statements" that involve
risks and uncertainties. Forward-looking statements are not
guarantees of future performance and are inherently subject to
uncertainties and other factors, which could cause actual results
to differ materially from the forward-looking statements. These
factors and uncertainties include, but are not limited to: our
limited cash and a history of losses; the limited number of
potential customers; the limited number of suppliers for some of
our components and our HTS wire; there being no significant backlog
from quarter to quarter; our market being characterized by rapidly
advancing technology; overcoming technical challenges in attaining
milestones to develop and manufacture commercial lengths of our HTS
wire; customer acceptance of our HTS wire; fluctuations in product
demand from quarter to quarter; the impact of competitive filter
products, technologies and pricing; manufacturing capacity
constraints and difficulties; our ability to raise sufficient
capital to fund our operations (whether through our equity sales
agreement, registered direct offerings or otherwise), and the
impact on our strategic wire initiative of any inability to raise
such funds; the impact of any such financing activity on the level
of our stock price; our ability to fully utilize our equity sales
agreement as a source of future financings and the dilutive impact
of any sales under such agreement, whether due to market
conditions, our ability to satisfy various conditions required to
sell shares under the agreement, the sales agent's performance of
its obligations under the agreement or otherwise; the impact on the
level of our stock price, which may decline, in connection with the
sales under the equity sales facility, registered direct offerings
or otherwise; and local, regional, and national and international
economic conditions and events and the impact they may have on us
and our customers, such as the current worldwide recession.
Forward-looking statements can be affected by many other
factors, including, those described in the "Business" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" sections of STI's Annual Report on Form 10-K
for the year ended December 31, 2012 and in STI's other public
filings. These documents are available online at STI's website,
www.suptech.com, or through the SEC's website, www.sec.gov.
Forward-looking statements are based on information presently
available to senior management, and STI has not assumed any duty to
update any forward-looking statements.
CONTACT: Investor Relations Contact |
Cathy Mattison or Kirsten Chapman |
LHA |
+1-415-433-3777 |
invest@suptech.com |
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