SEOUL, South Korea, Dec. 6, 2011 /PRNewswire/ -- Pixelplus Co., Ltd. (PXPLY: PK), a fabless semiconductor company in South Korea that designs, develops, and markets CMOS image sensors for various consumer electronics applications, today announced that the Company will terminate its American Depositary Receipts ("ADR") Program.
As a first step for that purpose, the Company will provide written notice to its Depositary to terminate the Deposit Agreement with respect to its existing ADRs, with such termination to take effect on February 29, 2012. The Depositary will contact ADR holders in due course with additional information on this process, including those necessary and proper actions to be executed.
The Company's ADRs will continue to trade over the counter ("OTC") in the United States until the date of termination of the Deposit Agreement on February 29, 2012.
"We are inclined to terminate the Deposit Agreement and ADR Program as we do not envision the ADR Program as positively enabling, effectuating, or contributing to our short-term and long-term business goals and strategies now and into the foreseeable future," said Dr. S.K. Lee, CEO and Founder of Pixelplus. "In addition, the Company's financial costs and expenses incurred in connection with sustaining the ADR Program poses an undue and unnecessary economic burden which we would like to eliminate in moving forward. For these reasons, we have no choice but to terminate the Deposit Agreement and ADR Program in a timely and effective manner. Although this is not something we would have chosen to do, we feel compelled and obligated under the current circumstances to make this decision in the best interests of the Company."
Pixelplus expects to become a part of the "Free Board" in South Korea in due course, which is South Korea's equivalent of the OTC in the United States, so that ADR holders who convert their ADRs into ordinary shares can trade those converted ordinary shares in the Korean market. Once the Company becomes a part of the Free Board, Pixelplus will post that development on its website (http://www.pixelplus.com).
About Pixelplus Co., Ltd.
Pixelplus is a South Korea-based developer of high-performance, high-resolution, and cost-effective CMOS image sensors for use primarily in mobile camera phones. In addition to mobile phones, Pixelplus provides CMOS image sensors and SoC solutions for use in webcams and notebook embedded cameras, toys and games, and security and surveillance system applications.
As a fabless semiconductor company, Pixelplus is focused on creating proprietary design technologies to develop CMOS image sensors with sharp, colorful and enhanced image quality, size efficiency, and low power consumption.
Forward Looking Statement
This press release contains certain statements that are not historical in nature but are "forward-looking statements" within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of forward-looking terminology, such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "project," or "continue" or the negative of such words or other similar words. Pixelplus cautions readers that forward-looking statements are based on the Company's current expectations, estimates and assumptions about our company and our industry, and are subject to a number of risks and uncertainties. Actual results may differ materially from those contained in such forward-looking statements. These factors may cause Pixelplus' results to differ materially from the forward-looking statements made in this release. The forward-looking statements speak only as of the date of this press release, and Pixelplus assumes no duty or obligation to update them to reflect new, changing, or unanticipated events or circumstances.
Pixelplus Co., Ltd.
6th Floor, Gyeonggi R&DB Center
906-5 Iui-dong, Yeongtong-gu
Suwon-si, Gyeonggi-do, 443-766
Republic of Korea
London – Miles Chapman at +44 (0) 20 7614 2916
Rob Newman at +44 (0) 20 7614 2900
E-mail [email protected]
SOURCE Pixelplus Co., Ltd.