7 July 2016

SemiLEDs sells stake in firm to Dr Peter Chiou

LED chip and component maker SemiLEDs Corp of Hsinchu, Taiwan has entered into a definitive agreement for Dr Peter Chiou to purchase 577,000 shares (about 19.6% of its outstanding common stock) at $5 per share.

Chiou also intends to subscribe to a $1,615,000 SemiLEDs' 0%-interest convertible note with a 29 September 2017 maturity date. Subject to shareholder approval at the next shareholders meeting, the note will be convertible into a number of shares equal to $1,615,000 divided by the conversion price ($3.40, or the 5-trading-day volume-weighted average price on the NASDAQ Stock Market ending on the maturity date, whichever is less).

These investments are expected to be made in three instalments, as follows:
* $1,000,000 (which has already been wired to the firm's bank account); 
* $1,885,000 (to be wired to the firm on or before 15 August) - upon completion of the share purchase, Chiou will be appointed a member of SemiLEDs' board of directors (Chiou has agreed to waive any compensation for his services on the board); 
* $1,615,000 (to be wired to the firm on or before 29 September).

SemiLEDs cautions that there is no assurance that it can successfully close the financing or if Dr Chiou is able to meet the funding requirements of the purchase agreement.

NASDAQ notice of listing non-compliance

As announced on 28 June, Arthur H. del Prado resigned from the board of directors (effective 22 June). On 30 June, SemiLEDs received a notice from The NASDAQ Stock Market indicating that it no longer complies with the audit committee requirements, and confirming the firm's opportunity to regain compliance (within the cure period provided in Listing Rule 5605(c)(4), either by 19 December 2016 if the next annual stockholders' meeting is held before then, or by 22 June 2017 if the next annual meeting is held after 19 December 2016). 

See related items:

SemiLEDs announces reverse stock split to maintain NASDAQ listing

SemiLEDs improves quarterly margins and cash reserves

Tags: SemiLEDs

Visit: www.semileds.com