Amtech Systems Inc. has reached an agreement to terminate the Korean joint venture.TEMPE, Ariz.--(BUSINESS WIRE)--Oct. 2, 1996--Amtech Systems Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ASYS) reported that it had reached an agreement to terminate the Korean joint venture. In accordance with the termination agreement, Amtech is to receive $478,143 as a return of its initial investment and reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. of certain direct and indirect expenses related to establishing and monitoring the joint venture. Approximately one year ago, Amtech Systems Inc. entered into a joint venture agreement pursuant to which it has a 45 percent ownership interest and a 50 percent voting interest Voting interest in business and accounting is a percentage of voting stock owned. This notion is different from economic interest that refers to a percentage of all the equity issued, including preferred stock, warrants, and so on. in the joint venture company, Seil Semicon Inc. (the "JVC JVC Victor Company of Japan (or Japan's Victor Company) JVC Jewelers Vigilance Committee JVC Jesuit Volunteer Corps JVC Jet Vane Control (directs VLS-launched missiles) JVC Jonker-Volgenant-Castanon "), in return for its commitment to invest up to $500,000 in cash. The purpose of the joint venture was to operate a silicon test wafer reclaiming business through Seil Semicon Inc. ("Seil"), which remains in the start-up phase. Seil Semicon Inc. has been relatively successful obtaining commitments for its originally estimated capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. of $4.5 million. However, a recent review of the JVC's anticipated costs during the start-up phase and the additional equipment required for the operations increased the total projected capital requirements by approximately $2.5 million. Under the existing ownership structure, Amtech was Seil's only source for these additional funds. Amtech's management concluded that increasing its investment to $3 million was more risk than the company should take under the circumstances. This was the primary reason that Amtech negotiated the termination of the joint venture agreement and the redemption of its 45 percent ownership interest in Seil in exchange for the $478,143 payment described above. J.S. Whang said, "Amtech will continue to seek opportunities for acquiring new products or businesses that can support our growth plan and benefit from having access to our existing channels of distribution, which serve the semiconductor manufacturing industry." Amtech Systems Inc. manufactures capital equipment for use in the production of semiconductors, including the Tempress(R) Systems' horizontal diffusion furnace, ATMOSCAN(R), an environmentally controlled wafer processing system, IBAL IBAL Irish Business Against Litter , modular robotic devices which automate the process of wafer loading and unloading Unloading Selling securities or commodities whose prices are dropping to minimize loss. , and load stations, which load Tempress(R) and other brands of furnaces. CONTACT: Amtech Systems Inc., Tempe Robert T. Hass, 602/967-5146 |
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