CRYSTALLUME TO ACQUIRE ELECTRONIC DESIGNS, INC.SANTA CLARA Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif.--(BUSINESS WIRE)--August 14, 1995--Crystallume (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 BULLETIN BOARD: CRYS) today announced that it has executed a definitive purchase agreement to acquire Electronic Designs, Inc. ("EDI (Electronic Data Interchange) The electronic communication of business transactions, such as orders, confirmations and invoices, between organizations. Third parties provide EDI services that enable organizations with different equipment to connect. ") for $13.0 million cash, contingent upon due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. and financing. EDI is a profitable, privately-held manufacturer of high density memory components used in commercial and military systems with revenues of approximately $30 million for the last 12 months. EDI also designs and manufactures flat panel display A thin display screen for computer and TV usage. The first flat panels appeared on laptop computers in the mid-1980s, and the LCD technology became the standard. Stand-alone LCD screens became available for desktop computers in the mid-1990s and exceeded sales of CRTs for the first time units suitable for avionics and other specialty applications using active matrix liquid crystal display liquid crystal display (LCD) Optoelectronic device used in displays for watches, calculators, notebook computers, and other electronic devices. Current passed through specific portions of the liquid crystal solution causes the crystals to align, blocking the passage of light. glass and other components purchased from suppliers. EDI's facilities consist of 33,000 square feet of manufacturing and office space located in Westborough, Massachusetts, and sales offices in Dallas, Los Angeles, and London, England. Crystallume has made a non-refundable earnest money A sum of money paid by a buyer at the time of entering a contract to indicate the intention and ability of the buyer to carry out the contract. Normally such earnest money is applied against the purchase price. deposit of $750,000 towards the purchase price, using funds provided to the Company by certain institutional shareholders. The Company will undertake to arrange debt and equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. in order to complete this transaction. Under the terms of the agreement, the transaction must be completed on or before October 31, 1995. There can be no assurance that Crystallume will be successful in its effort to raise the required funds under reasonable terms or that the Company will be able to complete the proposed acquisition. Crystallume and EDI believe that there is potential to employ synthetic diamond technology to increase the speed and reliability of semiconductor devices by improving the thermal dissipation of their electronic packaging components. In addition to strengthening the Company's financial position, the combination with EDI provides Crystallume with applications expertise needed to develop diamond-enhanced electronic devices and packages. Synthetic diamond films have also demonstrated properties which may be useful in certain designs for future generations of flat panel displays. However, to date, neither Crystallume nor EDI have developed electronic products incorporating Crystallume's diamond technology and there is no assurance that such products, if developed, would be technically or commercially viable. Crystallume develops and manufactures advanced synthetic diamond products for the automotive, aerospace and electronics industries. CONTACT: CRYSTALLUME Thomas A. Schultz, Jeffrey R. Osorio, 408/653-1700 or WOLFE AXELROD ASSOCIATES Stephen D. Axelrod, Mona J. Walsh Barbara Yu (Media), 212/370-4500 |
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