Multi-award winning Anglo-American platform technology firm Kromek, has today announced it has successfully completed its second US acquisition, that of Pennsylvania-based Endicott Interconnect Detection and Imaging Systems (EIDIS), a division of Endicott Interconnect Technologies Inc.
Formerly known as eV Products, EIDIS becomes a fully owned subsidiary of the Kromek Group and will be trading as eV Products Inc.
eV Products operates in a similar area to Kromek; it was the pioneer and has over two decades of experience in Cadmium Zinc Telluride (CZT) materials and detectors. eV Products remains a leading global manufacturer of CZT detectors that can be integrated into custom designed OEM components and subassemblies for medical imaging, nuclear, industrial and homeland security markets.
Employing over 40 staff in a 3,000m2 facility in Saxonburg, the company has a large suite of products, and brings with it a very wide range of skills, competencies, capabilities, capacity and IP.
Kromek CEO, Dr Arnab Basu said: "There are compelling reasons for making this acquisition, not least that it put puts Kromek Group in a strong position in the spectral radiation detection market by having the widest breadth of technology for detector materials production and manufacturing capability, and is further complemented by the ASIC and electronics capabilities of Kromek's first acquisition, California-based NOVA, and the existing wide breadth of expertise of Kromek in the UK."
"While Kromek's business model has recently been focused on developing end-user products in nuclear and explosive detection market, EIDIS had remained focused on OEM components and subassemblies-based product range."
"Combining Kromek and eV Products technology and IP will create an unparalleled company in the CZT industry, meeting the needs of customers in the medical, security, industrial and defense industries."
Dr Basu added: "The Group now employs more than 100 people across its three facilities. This means that together with our worldwide distributors, Kromek is able to fully service a growing global customer base that reaches across the US, Europe, Asia, Pacific and Australia.
"This acquisition further demonstrates our continued commitment to expand business in the US; it's part of a planned strategy of growth, expanding to meet growing customer demands in the US market. This acquisition also establishes Kromek's ability to provide a domestic source and security of supply for US customers"
London and New York, 18 April 2013 - Amphion Innovations plc (LSE: AMP) (the "Company" or "Amphion") was advised, on 17 April 2013 that Richard Morgan, CEO of Amphion, purchased 750,000 ordinary shares at 2.75 pence per ordinary shares on 17 April 2013 in the Company. Accordingly, Richard Morgan is now beneficially interested in 25,442,499 ordinary shares, representing 17.31 per cent of its issued ordinary share capital.
R. James Macaleer, Chairman of Amphion, has agreed to extend the terms of his Notes totaling $6,308,600. The loan is now repayable on 31 December 2014 and continues to carry interest at 7 per cent per annum.
Mr. Macaleer's 3,500,000 warrants have also been extended to expire on 31 December 2014. Each warrant entitles the holder to subscribe for one Ordinary Share at 8 pence per Ordinary Share.
This transaction is deemed a related party transaction for the purposes of the AIM Rules. As a result, the Independent Directors consider, having consulted with the Company's nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.
In addition, although our current approach to valuation of our Partner Companies is very cautious, we continue to see the opportunity to extract additional value from these holdings. All seven of our Partner Companies are making some progress, depending on how much we have been able to invest when outside financing has not been available. Kromek is the one company that has managed to continue to attract additional outside financial support and the company has recently managed to conclude the acquisition of eV Products in the early part of this year. We believe this is an important strategic addition to Kromek's growing portfolio of technology, patents, customers, and human resources and underpins the company's pivotal position in the emerging market for CZT based imaging systems.
Financial support for Amphion since June 2012 has been provided, for the most part, by loans from the directors, additional contributions from the management team, and a Placing to investors in December 2012. We have continued to cut costs wherever possible and the leadership team has been working with much reduced levels of current cash compensation. Additional support by the directors is detailed in the Loan Extension section below. Our goal is to help the company get through this challenging period in the market to the point where we can begin to realize the fruits of our investment in DataTern and our Partner Companies.
We continue to have confidence in our business model, the strength of the IP programme, and the potential of each of our Partner Companies and we are working hard to develop and extract the inherent value in each one. While market conditions seem to be improving, it is too early to know if the more positive conditions of the last few months will continue. Given these recent improvements in the broader capital markets, we are closely watching for an opportunity to take advantage of a more supportive environment for technology and med-tech IPO's. We remain focused on adapting and evolving new strategies to generate and extract value for our shareholders while looking for ways to capitalize on the better market conditions to raise capital for our Partner Companies and, in the process, strengthen our balance sheet.
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