Zwolle, 02 July 2015
RoodMicrotec N.V. has secured a significant multi-year supply chain order for the automotive industry, which will run 10 years. The expected sales will be between EUR 2.5 and 3 million per year. Preparations for this order are currently under way, and are anticipated to take approx. 9 months. As a result, the supply chain activities with the abovementioned volume of between EUR 2.5 and 3 million per year will start in the second quarter of 2016.
Our Stuttgart Automotive Competence Centre, based in the heartland of the industry, which provides customers with easy access to the expertise and knowledge required to support their product, has contributed significantly to winning this order. After securing this order, our quote portfolio remains at least at the level stated in our press release of 8 January 2015, which put our quote portfolio at over EUR 10 million. It therefore remains high and contains significant potential for further key orders.
RoodMicrotec’s strategy focuses on growth in strongly growing markets, such as automotive, industrial/medical and IoT, in particular of supply chain activities, which include test engineering, failure & technology analysis, qualification & reliability and logistics services.
‘As we have indicated before, the lead times of our orders are often longer than expected. Therefore, this order represents a milestone. Furthermore, it is an order in one of our growth markets. Clearly, RoodMicrotec is very pleased with the order. It has also proved the value of our Automotive Competence Centre’, said RoodMicrotec CEO Philip Nijenhuis.
For this project and other expected projects, some initial investments and additional working capital are needed. Based on present estimates, a capital raising by means of a new issue of RoodMicrotec shares will be desirable. For this, an agreement has been concluded on 2 July 2015 with an investor to – as and when RoodMicrotec feels this is necessary – issue shares in monthly tranches of at least EUR 100,000 and at most EUR 200,000, up to a maximum of EUR 1,000,000. Up to and including 23 April 2018, RoodMicrotec has the option of extending this agreement up to a total of EUR 2 million if the order portfolio gives rise to this.
The share issue described above is within the margins that were approved by the
extraordinary general meeting of shareholders on 23 January 2015. In view of the character of the share issue, no prospectus will be published.
The issue will be effected at a price determined based on the lowest five day prices in the month preceding the issue, taking account of a 3% discount per tranche.
This agreement will run until 23 April 2018, the period for which the shareholders’ meeting of 24 April 2013 granted the board of management authority to issue shares. The right to make use of this scheme is exclusively RoodMicrotec‘s.
Current shareholders and option holders
In addition to this issue of ordinary shares, RoodMicrotec wishes to grant its existing shareholders and option holders as of 2 July 2015, 5:40pm, one (1) warrant per twenty-four RoodMicrotec shares/option rights. The abovementioned investor as of 2 July 2015 will hold equal warrant rights for each tranche effected as the other shareholders and option holders. Further arrangements on the granting of the warrants and their exercise are described in the warrant scheme, which is expected to be published no later than 31 July 2015 on the company’s website (www.roodmicrotec.com), but definitely no later than on the day on which
the warrants are included in the quotation.
The warrant’s exercise price is EUR 0.21 and the warrant can be exercised up to and including 10 January 2017, being the final day of the final exercise period. An application will be made for the warrants to be quoted on Euronext Amsterdam, and they are expected to be quoted as of the second half of August 2015. Further details of the warrant scheme will also be placed on the company’s website.
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 shop 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.
Its value-added services include 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) and the Netherlands (Zwolle).