FREE subscription
Subscribe for free to receive each issue of Semiconductor Today magazine and weekly news brief.


20 May 2008


QPC raises $2m to expand production capacity

QPC Lasers Inc of Sylmar, CA, USA, which manufactures high-power lasers for consumer, industrial, defense and medical markets, plans to expand its facilities to meet growing production requirements.

“As we endeavor to compete in higher-volume markets such as consumer electronics, we will require additional manufacturing and cleanroom space to meet increased production requirements,” says co-founder and chief financial officer George Lintz. “Manufacturing capacity is crucial to meeting and growing customer orders and thus is an operational necessity we must proactively address,” he stresses. “The ability to deliver in volume and on-time is an important underlying requirement to maintaining and growing long fruitful relationships with new and current customers alike.”

To fund the build out, as well as higher-powered additions to our Generation III product line and other corporate marketing and administrative needs, QPC has issued $2.2m of debentures that have a term of three years, pay 10% interest, and are convertible into common stock at $1.05, a premium to the current market price (subject to possible adjustment based on certain events). QPC has also issued five-year common stock purchase warrants that are exercisable at $1.05. The securities were privately placed with a mix of institutional and accredited investors.

The debentures were sold at a 10% discount to their principal amount, generating gross proceeds of about $1.99m. Cash proceeds will be used for facility expansion, increased marketing and general corporate purposes.

See related items:

QPC’s product revenue and gross margin more than double year-on-year

QPC’s revenues grow 158% in 2007

Search: QPC Lasers