Amtech Systems Inc. Announces $5 Million Funding for Growth Plan
14 September 2000
Amtech Systems Inc. Announces $5 Million Funding for Growth Plan
TEMPE, Ariz.--Sept. 14, 2000--Amtech Systems Inc. Thursday announced the completion of a $5 million private placement of common stock and common stock purchase warrants.The proceeds will be used to fund the company's growth initiatives. The funds were raised through the private placement of 383,000 shares of the company's common stock at a price of $13.75 per share and five-year warrants to purchase 38,300 shares with an exercise price of $15.12 per share.
Gross proceeds in the transaction were $5,266,000. Net proceeds to the company, after deducting fees of the placement agents, but before deduction of legal and accounting fees were $4,690,000. The company has agreed to register the resale of the shares issued in the transaction, including those issuable upon exercise of the warrants.
The company stated that its growth plan includes continuing to expand its optical component customer base and other strategies to increase sales of existing products, sales growth from new products within its existing products lines, begin sales of its new technology asher, which was previously announced and continues to be in the research and development stage, and acquisitions of synergistic product(s) or business(es).
J.S. Whang, the company's president and chief executive officer, stated, "The first two components of our growth strategy are essentially organic growth, which generally can be financed with existing resources. We intend to use the funds raised today to bring the new technology asher to market and for acquisitions.
"We plan to begin shipments of the new technology asher in fiscal 2002, barring any complications in development. In addition, we are also negotiating a bank line of credit to further increase funds available for implementing our growth plan."