TEMPE, Ariz., July 23, 2015 /PRNewswire/ -- Amtech Systems, Inc. (NASDAQ: ASYS), a global supplier of production equipment and related supplies for the solar, semiconductor, and LED markets, today announced that Kingstone Technology Hong Kong Limited (of which Amtech owns 55%) signed an agreement to sell shares in Kingstone Semiconductor Company Ltd, a Shanghai-based technology company specializing in ion implant solutions for the solar and semiconductor industries, to a China-based venture capital firm. Proceeds from the sale of shares will be paid to Amtech and used to support the company's core strategic initiatives. As part of the agreement, the venture capital firm is committed to purchase shares directly from Kingstone Semiconductor, infusing new capital into Kingstone's ion implant business. Amtech will retain its exclusive solar sales and service rights until the company receives payment of $5.6 million which is due on or before March 31, 2016. The transaction is subject to customary closing conditions and regulatory approvals in both Shanghai and Hong Kong.
Fokko Pentinga, Chief Executive Officer, commented, "Successful development of our solar ion implant systems and related new customers during the solar market down cycle positioned us to enter into this transaction and monetize part of our ion implant research and development investment. We will continue to participate in the solar ion implant business with world-wide, non-exclusive, selling rights and minority ownership in the business."
Upon completion of the transaction, Amtech will receive approximately $8 million (pre-tax) for its shares and the repayment of a loan; and an additional $5.6 million (pre-tax) by March 31, 2016, for its exclusive sales and service rights; and will own 15% of the Hong Kong holding company (effectively a 10% beneficial ownership in the Shanghai operating entity).
Additional information regarding the material terms of the acquisition is set forth in a current report on Form 8-K filed by Amtech, which is available over the internet at the SEC's website at http://www.sec.gov.
About Amtech Systems, Inc.
Amtech Systems, Inc. is a global supplier of advanced thermal processing equipment to the solar, semiconductor / electronics, and LED manufacturing markets. Amtech's equipment includes diffusion, ALD and PECVD systems, ion implanters, and solder reflow systems. Amtech also supplies wafer handling automation and polishing equipment and related consumable products. The Company's wafer handling, thermal processing and consumable products currently address the diffusion, oxidation, and deposition steps used in the fabrication of solar cells, LEDs, semiconductors, MEMS, printed circuit boards, semiconductor packaging, and the polishing of newly sliced sapphire and silicon wafers. Amtech's products are recognized under the leading brand names Tempress Systems™, Bruce Technologies™, PR Hoffman™, R2D Automation™, Kingstone Semiconductor, SoLayTec, and BTU International.
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this press release is forward-looking in nature. All statements in this press release, or made by management of Amtech Systems, Inc. and its subsidiaries ("Amtech"), other than statements of historical fact, are hereby identified as "forward-looking statements" (as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). In some cases, forward-looking statements can be identified by terminology such as "may," "will," "should," "would," "expects," "plans," "anticipates," "intends," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology or our management are intended to identify such forward-looking statements. Examples of forward-looking statements include statements regarding Amtech's future financial results, operating results, business strategies, projected costs, products under development, competitive positions, and plans and objectives of Amtech and its management for future operations. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. The Form 10-K that Amtech filed with the Securities and Exchange Commission (the "SEC") for the year-ended September 30, 2014, listed various important factors that could affect the company's future operating results and financial condition and could cause actual results to differ materially from historical results and expectations based on forward-looking statements made in this document or elsewhere by Amtech or on its behalf. These factors can be found under the heading "Risk Factors" in the Form 10-Ks and investors should refer to them. Because it is not possible to predict or identify all such factors, any such list cannot be considered a complete set of all potential risks or uncertainties. Except as required by law, we undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events, or otherwise.
Amtech Systems, Inc.
SOURCE Amtech Systems, Inc.