Tuesday May 20, 6:30 am ET
SYLMAR, Calif.--(BUSINESS WIRE)--QPC Lasers, Inc. (OTCBB:QPCI - News) ?QPC,? a world leader in the design and manufacture of high brightness, high power semiconductor lasers for the consumer electronics, industrial, defense, and medical markets, today announced that it plans to expand its facilities to meet growing production requirements. To facilitate the expansion, the company has issued $2.2 million in principal amount of convertible debentures and warrants exercisable at a premium to the current market price.
?As we endeavor to compete in higher volume markets such as consumer electronics, we will require additional manufacturing and clean room space to meet increased production requirements,? said 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. 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, we issued $2.2 million of debentures which may be converted into our common stock at a premium to market.?
The debentures have a term of three years, pay ten percent interest, and are convertible at $1.05, a premium to today?s market. The conversion price is subject to possible adjustment based on certain events. No principal payments are due on the debentures until they mature in April 2010. The Company 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 to the company of approximately $1,990,000. Cash proceeds will be used for facility expansion, increased marketing and general corporate purposes.
Forward Looking Statements
This release and other materials released by the Company from time to time contain or may contain forward looking statements and information that are based upon beliefs of, and information currently available to, the Company's management as well as estimates and assumptions made by the Company's management. When used in the materials the words "anticipate," "believe," "estimate," "expect," "future," "intend," "plan" or the negative of these terms and similar expressions as they relate to the Company or the Company's management identify forward looking statements. Such statements reflect the current view of the Company with respect to future events and are subject to risks, uncertainties, assumptions and other factors (including the risks contained in the sections of the Company's reports filed with the Securities and Exchange Commission entitled "Risk Factors") relating to the Company's industry, the Company's operations and results of operations and any businesses that may be acquired by the Company. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended or planned. Although the Company believes that the expectations reflected in the forward looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results. The following discussion should be read in conjunction with the Company's reports filed with the Securities and Exchange Commission.
About QPC Lasers, Inc.
QPC Lasers, Inc. (www.QPClasers.com) is a world leader in the development, manufacture and distribution of high-brightness, high-power semiconductor lasers for the consumer electronics, defense, homeland security, industrial, and medical markets. Founded in the year 2000, QPC is vertically integrated from epitaxy through packaging and performs all critical fabrication processes at its state-of-the-art high-technology facility in the Los Angeles suburb of Sylmar, CA. QPC is a publicly traded U.S. company (OTC BB: QPCI.OB) and is ISO certified.
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