Kopin Enters Into Strategic Relationship With Goertek Inc.
January 03 2017 - 8:30AM
Business Wire
- Kopin to sell 7.3 million shares to
Goertek for $23.9 million
- Kopin and Goertek Enter into Product
Development and Commercialization Agreements
Kopin Corporation (Nasdaq:KOPN), a leading developer of
innovative wearable computing technologies and solutions, today
announced it had entered into a strategic relationship with Goertek
Inc. (“Goertek”), a leading innovative global technology company
headquartered in Weifang China that provides vertically integrated
total solutions and services to globally-renowned companies such as
Samsung, Sony, Microsoft, Huawei and Xiaomi to name a few.
Under the terms of the stock sale agreement, Kopin will sell
7,339,000 shares of Kopin’s common stock to Goertek for US
$23,851,750 ($3.25 per share). This represents approximately 9.8%
of Kopin’s total outstanding shares of common stock. In addition
Kopin and Goertek have entered into agreements to jointly develop
and commercialize a range of technologies and wearable products.
The goal of the partnership is to utilize Goertek’s
industry-leading expertise in design and manufacturing to further
develop and sell a range of wearable products incorporating Kopin
technologies and components.
“Our partnership with Goertek will enable Kopin to leverage
their world class capabilities to commercialize our innovative
components and further improve our system products,” said Dr. John
C.C. Fan, Kopin’s President and CEO. “In addition to our
transmissive and reflective LCD products, we have developed our
industry-leading Whisper® Voice Chip and most recently announced
our OLED LightningTM microdisplay with 2048 x 2048 resolution with
unique Pantile™ Optics which we will demonstrate at CES 2017 this
week. We will work with Goertek to incorporate our Whisper Voice
Chip and Lightning display into the product designs Goertek
provides to its customers. We will also work closely with Goertek
to develop system products for consumer mobile augmented reality
(AR) and virtual reality (VR) markets.”
“We are excited with this strategic relationship with Kopin
which has innovative technologies and products,” said Long Jiang,
Goertek’s CEO. “Goertek is the world’s leading designer and
manufacturer of VR/AR and other wearable products. This partnership
with Kopin will enable us to provide our customers and partners
with cutting edge technologies and products for better performance
and designs in the fast growing wearable market.”
The stock sale is subject to standard closing conditions and is
scheduled for completion by January 27, 2017.
About Goertek
Goertek Inc. was established in June 2001, and listed on the
Shenzhen Stock Exchange in May, 2008. As a leading innovative
high-tech company, Goertek’s main focuses consist of R&D,
production and sales of electro-acoustic components, optical
components, and smart hardware system products. Goertek provides
vertically integrated total solutions and services to
globally-renowned consumer electronics companies. Goertek is one of
the main high-end VR/AR ODM solutions providers in the world.
Since Goertek's establishment in 2001, Goertek has high
performance with a consistent and rapid growth rate. By the end of
2015 sales revenue had exceeded over 13.7 billion RMB (total assets
19.2 billion RMB). By market share, Goertek is a top ranked company
in the miniature microphone. For more information, please visit
Goertek’s website at www.goertek.com.
About Kopin
Kopin Corporation is a leading developer and provider of
innovative wearable technologies and solutions for integration into
head-worn computing and display systems to military, industrial and
consumer customers. Kopin’s technology portfolio includes
ultra-small displays, optics, speech enhancement technology, system
and hands-free control software, low-power ASICs, and ergonomically
designed smart headset reference systems. Kopin’s proprietary
components and technology are protected by more than 300 global
patents and patents pending. For more information, please visit
Kopin’s website at www.kopin.com.
Kopin, Whisper, Lightning, Pantile, and Solos are trademarks
of Kopin Corporation.
Forward-Looking Statements
Statements in this press release may be considered
“forward-looking” statements under the “Safe Harbor” provisions of
the Private Securities Litigation Reform Act of 1995. These
include, without limitation, statements relating to our statement
that under the terms of the stock sale agreement the Company will
sell 7,339,000 shares of the Company’s common stock for $23,851,750
($3.25 per share); the Company and Goertek have entered into
agreements to jointly develop and commercialize a range of
technologies and wearable products; the goal of the partnership is
to utilize Goertek’s industry leading expertise in design and
manufacturing to further develop and sell wearable products
incorporating the Company’s technologies and components; the
Company’s partnership with Goertek will enable the Company to
leverage Goertek’s world class capabilities to commercialize the
Company’s innovative components and further improve the Company’s
system products; the Company will work with Goertek to incorporate
its Whisper Voice Chip and Lightning display into the product
designs Goertek provides to its customers; the Company will also
work closely with Goertek to develop system products for consumer
mobile AR and VR markets; and the accelerating growth Goertek sees
in the sale of wearable products. These statements involve a number
of risks and uncertainties that could cause actual results to
differ materially from those expressed in the forward-looking
statements. These risks and uncertainties include, but are not
limited to, the following: The sale of the stock to Goertek may not
be completed; the Company and Goertek may not develop or
commercialize any technology or products; the partnership may not
develop and or sell wearable products based on the Company’s
technologies and components; Goertek may not incorporate the
Company’s components, Whisper Voice chip or Lightning Display in
the product designs it provides to its partners and customers; the
Company and Goertek may not develop system products for consumer
mobile AR and VR markets; the wearable market may not grow fast; it
may take longer than the Company estimates to develop products; the
Company’s products may not be accepted by the market place;
there may be issues that prevent the adoption or further
development of the Company’s wearable computing
technologies; manufacturing, marketing or other issues may
prevent either the adoption or acceptance of products; the Company
might be adversely affected by competitive products and pricing;
new product initiatives and other research and development efforts
may be unsuccessful; the Company could experience the loss of
significant customers; costs to produce the Company’s products
might increase significantly, or yields could decline; the
Company’s customers might be unable to ramp production volumes of
their products, manufacturing delays, technical issues, economic
conditions or external factors may prevent the Company from
achieving its goals; and other risk factors and cautionary
statements listed in the Company’s periodic reports and
registration statements filed with the Securities and Exchange
Commission, including the Annual Report on Form 10-K for the 12
months ended December 26, 2015, and the Company’s subsequent
filings with the Securities and Exchange Commission. You
should not place undue reliance on any forward-looking statements,
which are based only on information currently available to the
Company and only as of the date on which they are made. The Company
undertakes no obligation to update any of these forward-looking
statements to reflect events or circumstances occurring after the
date of this release.
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version on businesswire.com: http://www.businesswire.com/news/home/20170103005395/en/
For Product Information:Kopin CorporationPaul Baker,
508-870-5959VP Business Developmentpbaker@kopin.comorFor Investor
RelationsKopin CorporationRichard
Sneider, 508-870-5959Treasurer and Chief Financial
Officerrsneider@kopin.comorMarket Street PartnersJoann
Horne, 415-445-3233JHorne@marketstreetpartners.com
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