SANTA CLARA, Calif.,
Aug. 9, 2017 /PRNewswire/
-- UniPixel, Inc. (NASDAQ: UNXL), a provider of
advanced solutions to the touchscreen and flexible electronics
markets, today announced the signing of a non-binding letter of
intent to enter into a strategic transaction with Future Tech,
under which Future Tech will produce UniPixel's XTouch™ sensors in
Changzhou City, Jiangsu Province in China.
Under the terms of the letter, Future Tech expects to form a
joint venture that will own and operate a manufacturing facility in
Changzhou, China. Future Tech will
also be responsible for creating an organization to sell, market
and distribute metal mesh touch screen sensors to original
equipment manufacturers ("OEMs") headquartered in the Asia Pacific region. Future Tech intends to
manufacture sensors for UniPixel, subject to agreement on volume
and pricing. A definitive agreement is expected to be executed
during September 2017.
The letter of intent provides that Future Tech will pay UniPixel
up to $5.1 million for rights,
know-how and manufacturing assets that will be transferred to the
joint venture; $2 million will be
paid at an initial closing, with the remaining amounts payable upon
equipment qualification and manufacturing milestones. Future Tech
will separately provide all funding necessary to establish the
manufacturing facilities, acquire the necessary manufacturing
equipment, operate the facility and meet required working capital
needs.
Additional details of the letter provide that:
- the joint venture will make royalty payments to UniPixel based
on an IP license grant.
- the joint venture will market the XTouch™ product in the
Asia Pacific region, including to
China-based mobile and computer
OEM companies where Future Tech maintains existing
relationships.
- UniPixel will continue to manufacture and conduct research and
development for new products in Colorado Springs and will also
purchase sensors from Future Tech, thereby expanding the
manufacturing footprint for XTouch™ and the sensor supply to meet
UniPixel's customer's demand.
- UniPixel will contribute know-how and training to the joint
venture and also grant licenses to its IP.
Jeff Hawthorne, president and
chief executive officer of UniPixel, commented, "We are very
pleased to enter into a letter of intent for this strategic
partnership with Future Tech. We are confident that Future Tech
brings significant resources, relationships and capabilities, and
the wherewithal to be a highly effective manufacturing and
marketing partner."
"I have long held the view that UniPixel should conduct
manufacturing in Asia so that our
products are closer to our customers," continued Mr. Hawthorne.
"This partnership will allow us to deliver products more quickly,
eliminate freight cost arising with shipment from Colorado Springs
to Asia, and give us a greater
exposure to potential customers in Asia as well as capturing the lower cost
benefits of Asia-based
manufacturing. While our customers include many U.S. headquartered
major computer companies, they all have their display modules
assembled in Asia."
"We are excited to undertake this opportunity to partner with
UniPixel," said Mr. Caixing Xie,
president of Future Tech. "Combining Future Tech's resources,
contacts and low cost manufacturing capabilities with UniPixel's
technologies will allow XTouch™ to reach the significant potential
that we all believe exists for UniPixel's metal mesh sensor
technologies."
The Benchmark Company, LLC is acting as the Company's Financial
Advisor on the proposed strategic relationship.
About Future Tech
Future Tech is a technology company with manufacturing and related
assets in Changzhou City,
Jiangsu Province, China.
About UniPixel
UniPixel, Inc. (NASDAQ: UNXL) develops and markets high performance
metal mesh capacitive touch sensors for the touchscreen and
flexible displays markets. The Company's roll-to-roll electronics
manufacturing process patterns fine line conductive elements on
thin films. The company markets its technologies for touch panel
sensor, cover glass replacement, and protective cover film
applications under the XTouch™ and Diamond Guard™ brands. For
further information, visit www.unipixel.com.
Forward-looking Statements
All statements in this news release that are not based on
historical fact are "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended,
including the statement regarding UniPixel's entry into a
definitive agreement, including with regard to timing, payments and
the contributions that UniPixel and Future Tech will make to the
proposed transaction. projected cost savings. Such statements
contain words such as "will," and "expect," or the negative thereof
or comparable terminology. These statements are based on
management's current expectations. These forward-looking
statements rely on a number of assumptions concerning future events
and are subject to a number of risks, uncertainties, and other
factors, many of which are outside of our control, that could cause
actual results to materially differ from such statements. These
risks, uncertainties, and other factors include, but are not
limited to, timing of expenditures, the ability to recognize
revenues, the ability to extend product offerings into new areas or
products, the ability to compete in our currents markets, the
ability to commercialize licensed technology, unexpected
occurrences that deter the "bring to market" plan for products,
trends and fluctuations in the industry, changes in demand and
purchasing volume of customers, our ability to attract and retain
qualified personnel, our ability to raise additional capital, the
ability to move product sales to production levels, the success of
product sales in new markets or of recently produced product
offerings, the ability to enforce our intellectual property rights
and those set forth under Item 1A "Risk Factors" in our Annual
Report on Form 10-K for the year ended December 31, 2016 and other current and periodic
reports filed or furnished from time to time with the SEC. All
forward-looking statements in this press release are made as of the
date hereof, based on information available to UniPixel as of the
date hereof, and UniPixel assumes no obligation to update any
forward-looking statement.
Trademarks in this release are the property of their respective
owners.
Contact:
Joe Diaz, Robert Blum, Joe
Dorame
Lytham Partners, LLC
602-889-9700
unxl@lythampartners.com
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SOURCE UniPixel, Inc.