ROODMICROTEC N.V. 
By Zwolle, 25 September 2013
- RoodMicrotec has secured a major multi-year contract from an OEM
- OEM increasingly focusing on core activities
- Extensive cost savings by OEMs
- Due to attention and support from EU new opportunities for semiconductor industry in Europe
RoodMicrotec has won a multi-year contract from a major OEM (Original Equipment Manufacturer) for its chip supply chain. With this contract, the OEM has explicitly ruled out the Asia route. In addition, RoodMicrotec N.V. expects shortly to conclude negotiations on a new outsourcing project of another, also large, OEM. For this project, RoodMicrotec N.V. will also take over production equipment from the OEM.
Such projects have a duration of several years. Moreover, the outsourcing activities of OEMs are expected to increase further in the future, because these companies are focusing more and more on their core activities, partly in view of cost savings. Due to attention and support from the EU new opportunities are emerging for the semiconductor industry in Europe, including RoodMicrotec N.V.
Strategic consideration
RoodMicrotec's strategy is mainly aimed at growth of supply chain activities, which include the services test engineering, failure & technology analysis, qualification & reliability and logistics. Taking over the abovementioned non-core activities from OEMs in the 'Atlas' project, possibly including production equipment, fits nicely with this strategy. RoodMicrotec is one of the best positioned companies in this area in Europe.
'We are delighted with these contracts. Not only do they give new momentum to our sales, they will also put our supply chain activities on a firm footing. Also, we expect that the recent attention and support from the EU for the European semiconductor market will create new growth opportunities. The pieces of the puzzle appear finally to be falling into place for us,' Philip Nijenhuis, CEO of RoodMicrotec commented.
Financing
These projects require some initial investments, as well as additional working capital. Based on current estimates, a limited capital increase by means of an issue of new shares in the capital of RoodMicrotec N.V. will be desirable. For this purpose on 25 September 2013 an agreement was signed with an investor to issue - if RoodMicrotec deems it necessary - shares in monthly tranches of EUR 100,000 with a maximum of EUR 500,000. RoodMicrotec has the option of extending this agreement twice over the next five years, raising the total amount to EUR 1.5 million.
The issue described above does not exceed the margins approved by the shareholders' meeting of 25 April of this year. In view of the character of the issue, a prospectus need not be published.
The share issue will be effected at a price based on the average of the lowest five share prices in the month preceding the issue, taking account of a 3% discount per tranche.
This agreement will run until 25 April 2018, which is the period for which the shareholders' meeting on 25 April 2013 authorized the board of management of the company. The right to make use of this agreement is entirely RoodMicrotec's.
Attention for current shareholders and holders of option rights
In addition to this issue of ordinary shares, RoodMicrotec intends to allocate to its existing shareholders and option holders as of 30 September 2013, 5:40 pm, one (1) warrant per twelve RoodMicrotec shares/option rights. The aforesaid investor will have equal warrant rights as of 30 September 2013 per possible tranche as the other shareholders and option holders. Further arrangements concerning the allocation of warrants and their exercise are set out in the warrant arrangement which is expected to be placed on RoodMicrotec's website (www.roodmicrotec.com:
http://www.roodmicrotec.com/) as of 15 October 2013, but no later than the day on which the warrants are included in the listing.
The warrant exercise price is EUR 0.15 and this arrangement can be exercised until 1 October 2016. A quotation application will be made to NYSE Euronext Amsterdam, and the warrants are expected to be quoted as of the second half of October 2013. Further details of the warrant arrangement will also be placed on the abovementioned website.
About RoodMicrotec
With 40 years' experience as an independent value-added service provider in the area of micro and optoelectronics, RoodMicrotec offers fabless companies, OEMs and other companies a one-stop shopping proposition. With its powerful solutions RoodMicrotec has built up a strong position in Europe.
Our services comply with the industrial and quality requirements of the high reliability/space, automotive, telecommunications, medical, IT and electronics sectors.
Certified by RoodMicrotec concerns inter alia certification of products to the stringent ISO/TS 16949 standard that applies to suppliers to the automotive industry. The company also has an accredited laboratory for test activities and calibration to the ISO/IEC 17025 standard.
The value-added services comprise inter alia extended supply chain management, failure & technology analysis, qualification & burn-in, test- & product engineering, production test (including device programming and end-of-line service), ESD/ESDFOS assessment & training, quality & reliability consulting, supply chain management and total manufacturing solutions with partners.
RoodMicrotec has branches in Germany (Dresden, Nördlingen, Stuttgart), the UK (Bath) and the Netherlands (Zwolle).
Further information:
Philip Nijenhuis, CEO
Telephone +31 (0) 38 4215216
Email: investor-relations@roodmicrotec.com:
mailto:investor-relations@roodmicrotec.com
Website: www.roodmicrotec.com:
http://www.roodmicrotec.com/
http://hugin.info/130789/R/1731451/578881.pdf
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: RoodMicrotec N.V. via Thomson Reuters ONE
