Transphorm's Strategic Partner, Yaskawa, Converts $15.6 Million of Debt into Transphorm Common Stock at $5.00 Per Share
Transphorm, Inc. (OTCQX: TGAN)-a pioneer in and global supplier of high reliability, high performance gallium nitride (GaN) power conversion products, announced today Yaskawa Electric has converted 100% of its $15.6 million Transphorm convertible note into shares of Transphorm common stock at $5.00 per share. Yaskawa Electric is a world-leading manufacturer of low and medium voltage variable frequency drives, servo motors, machine controllers and industrial robots with over $3.7 billion in annual revenues.
Transphorm and Yaskawa continue to work together in the previously announced multi-year partnership for the development of GaN products for servo drives for robotics and motion control as well as a broader range of industrial and white goods applications. Yaskawa intends to use Transphorm's leading GaN power device products for a variety of innovative industrial power conversion applications initially with servo motor and variable frequency drive applications.
Commenting on the announcement, Akira Kumagae, CTO and Managing Executive Officer of Yaskawa Electric, stated, "We are pleased to become shareholders of Transphorm as we continue to collaborate in the development of highly reliable, higher power GaN products, suitable for a variety of motion control applications. The higher frequency, highly efficient GaN power devices and modules that will be made possible with Transphorm's GaN FET solutions will also meet stringent system requirements like short-circuit protection ability."
Umesh Mishra, Co-founder and CTO of Transphorm, commented, "Transphorm greatly values its long-term relationship with Yaskawa and is delighted to add a world-wide leader in motion control and robotics such as Yaskawa, as a strategic shareholder. We appreciate the confidence it shows by converting $15.6 million of Transphorm debt into shares of Transphorm at $5.00 per share. Yaskawa continues to help shape key developments in Transphorm's GaN roadmap, resulting in high performance power devices for industrial and motor control markets."
The conversion of the Transphorm debt also adds more than $17 million of positive shareholder equity to Transphorm's balance sheet, based on fair market value estimates. Following this investment, Yaskawa will own approximately 3.1 million shares of Transphorm, representing an approximate 7% ownership in the Company.
"The equity conversion significantly strengthens our balance sheet and is a key contributor toward the execution of the Company's previously announced plans to uplist its shares of common stock to the NASDAQ," said Primit Parikh, Co-founder and President. "It also underlines the strength of Transphorm's leading high voltage GaN platform with products ramping in applications ranging from 45 Watts to 10 Kilowatts with the highest lvels of quality and reliability. To date we have not seen any other competitive GaN platform cover this broad range of power levels or applications and that are actually in production, and many other existing offerings with GaN such as 'ICs' are typically limited to sub-500-Watt."
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