7 January 2020
Emcore agrees sale and leaseback deal for Concord MEMS facility
Emcore Corp of Alhambra, CA, USA (which provides mixed-signal optics products for defense systems and high-speed communication network infrastructure) has entered into a purchase agreement for a sale and leaseback transaction.
Under the terms of the purchase agreement, Emcore agreed to sell its quartz MEMS manufacturing property in Concord, California for a total of $13.4m.
Emcore expects that the close of the sale and leaseback transaction will occur in first-quarter 2020, subject to the satisfaction of certain customary closing conditions for transactions of this type.
Emcore aims to raise $30m in offering
Emcore has filed a shelf registration statement on Form S-3 with the US Securities and Exchange Commission (SEC) to offer and sell from time to time, in one or more offerings, common stock, preferred stock, debt securities, warrants, rights to purchase any of the foregoing securities, or units consisting of two or more of these classes or series of securities, up to a total not exceeding $30m.
The shelf registration statement is intended to give Emcore additional flexibility to finance the business by accessing the capital markets on a timely and cost effective basis. Any offering of the securities will be by means of a prospectus and an accompanying prospectus supplement. There is currently no schedule for any offering and no underwriter has been engaged.