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UniPixel and Future Tech Execute Letter of Intent for Strategic Partnership
[August 09, 2017]

UniPixel and Future Tech Execute Letter of Intent for Strategic Partnership


SANTA CLARA, Calif., Aug. 9, 2017 /PRNewswire/ -- UniPixel, Inc. (NASDAQ: UNXL), a provider of advanced solutions to the touchscreen and flexible electronics markets, today announced the signing of a non-binding letter of intent to enter into a strategic transaction with Future Tech, under which Future Tech will produce UniPixel's XTouch™ sensors in Changzhou City, Jiangsu Province in China. 

Under the terms of the letter, Future Tech expects to form a joint venture that will own and operate a manufacturing facility in Changzhou, China. Future Tech will also be responsible for creating an organization to sell, market and distribute metal mesh touch screen sensors to original equipment manufacturers ("OEMs") headquartered in the Asia Pacific region. Future Tech intends to manufacture sensors for UniPixel, subject to agreement on volume and pricing. A definitive agreement is expected to be executed during September 2017.

The letter of intent provides that Future Tech will pay UniPixel up to $5.1 million for rights, know-how and manufacturing assets that will be transferred to the joint venture; $2 million will be paid at an initial closing, with the remaining amounts payable upon equipment qualification and manufacturing milestones. Future Tech will separately provide all funding necessary to establish the manufacturing facilities, acquire the necessary manufacturing equipment, operate the facility and meet required working capital needs. 

Additional details of the letter provide that:

  • the joint venture will make royalty payments to UniPixel based on an IP license grant.
  • the joint venture will market the XTouch™ product in the Asia Pacific region, including to China-based mobile and computer OEM companies where Future Tech maintains existing relationships.
  • UniPixel will continue to manufacture and conduct research and development for new products in Colorado Springs and will also purchase sensors from Future Tech, thereby expanding the manufacturing footprint for XTouch™ and the sensor supply to meet UniPixel's customer's demand.
  • UniPixel will contribute know-how and training to the joint venture and also grant licenses to its IP.

Jeff Hawthorne, president and chief executive officer of UniPixel, commented, "We are very pleased to enter into a letter of intent for this strategic partnership with Future Tech. We are confident that Futue Tech brings significant resources, relationships and capabilities, and the wherewithal to be a highly effective manufacturing and marketing partner."

"I have long held the view that UniPixel should conduct manufacturing in Asia so that our products are closer to our customers," continued Mr. Hawthorne. "This partnership will allow us to deliver products more quickly, eliminate freight cost arising with shipment from Colorado Springs to Asia, and give us a greater exposure to potential customers in Asia as well as capturing the lower cost benefits of Asia-based manufacturing. While our customers include many U.S. headquartered major computer companies, they all have their display modules assembled in Asia."

"We are excited to undertake this opportunity to partner with UniPixel," said Mr. Caixing Xie, president of Future Tech. "Combining Future Tech's resources, contacts and low cost manufacturing capabilities with UniPixel's technologies will allow XTouch™ to reach the significant potential that we all believe exists for UniPixel's metal mesh sensor technologies."


The Benchmark Company, LLC is acting as the Company's Financial Advisor on the proposed strategic relationship.

About Future Tech
Future Tech is a technology company with manufacturing and related assets in Changzhou City, Jiangsu Province, China.

About UniPixel
UniPixel, Inc. (NASDAQ: UNXL) develops and markets high performance metal mesh capacitive touch sensors for the touchscreen and flexible displays markets. The Company's roll-to-roll electronics manufacturing process patterns fine line conductive elements on thin films. The company markets its technologies for touch panel sensor, cover glass replacement, and protective cover film applications under the XTouch™ and Diamond Guard™ brands. For further information, visit www.unipixel.com.

Forward-looking Statements
All statements in this news release that are not based on historical fact are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including the statement regarding UniPixel's entry into a definitive agreement, including with regard to timing, payments and the contributions that UniPixel and Future Tech will make to the proposed transaction. projected cost savings. Such statements contain words such as "will," and "expect," or the negative thereof or comparable terminology. These statements are based on management's current expectations.  These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control, that could cause actual results to materially differ from such statements. These risks, uncertainties, and other factors include, but are not limited to, timing of expenditures, the ability to recognize revenues, the ability to extend product offerings into new areas or products, the ability to compete in our currents markets, the ability to commercialize licensed technology, unexpected occurrences that deter the "bring to market" plan for products, trends and fluctuations in the industry, changes in demand and purchasing volume of customers, our ability to attract and retain qualified personnel, our ability to raise additional capital, the ability to move product sales to production levels, the success of product sales in new markets or of recently produced product offerings, the ability to enforce our intellectual property rights and those set forth under Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2016 and other current and periodic reports filed or furnished from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to UniPixel as of the date hereof, and UniPixel assumes no obligation to update any forward-looking statement.

Trademarks in this release are the property of their respective owners.

Contact:
Joe Diaz, Robert Blum, Joe Dorame
Lytham Partners, LLC
602-889-9700
unxl@lythampartners.com

 

View original content:http://www.prnewswire.com/news-releases/unipixel-and-future-tech-execute-letter-of-intent-for-strategic-partnership-300501745.html

SOURCE UniPixel, Inc.


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