Compositech Ltd. Signs Letter of Intent for $40 Million Laminate Production Joint Venture in Taiwan.HAUPPAUGE Hauppauge can refer to:
Receives $1 Million Down Payment Compositech Ltd. (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 :CTEK), which produces patented high tech laminates for the printed circuit board industry, announced today that it has signed a letter of intent with Fidelity Venture Capital Corp. of Taipei to form a joint venture in Taiwan and received a $1 million down payment on a technology license. The joint venture plans to establish a plant to produce and sell copper-clad fiberglass fiberglass, thread made from glass. It is made by forcing molten glass through a kind of sieve, thereby spinning it into threads. Fiberglass is strong, durable, and impervious to many caustics and to extreme temperatures. epoxy epoxy Any of a class of thermosetting polymers, polyethers built up from monomers with an ether group that takes the form of a three-membered epoxide ring. The familiar two-part epoxy adhesives consist of a resin with epoxide rings at the ends of its molecules and a curing laminates for printed circuit boards licensed under a patented process developed by Compositech Ltd. A majority equity interest in the new company, named Compositech Taiwan, will be owned by a group of private Taiwanese investors led by Fidelity Venture Capital. In addition to manufacturing, the joint venture will have the non-exclusive right to market Compositech's laminates in the Asia-Pacific region. The letter of intent provides that the joint venture make an equity investment in Compositech Ltd of $2 million, $500,000 of which will be reinvested in the joint venture. In addition to the $1 million down payment, Compositech would receive additional payments of $1 million on the license, a 10.5 percent interest in the joint venture and royalty income on sales of the joint venture. The total project is estimated to cost $40 million and is expected to start production in 1999. The establishment of the joint venture is subject to the completion of agreements and certain other conditions. Fred Klimpl, president of Compositech, said, "The Taiwan facility will give us a local presence in Asia's rapidly growing electronic laminates market, estimated at over 40 percent of the world market. We believe that our superior laminate laminate, n a thin slice of porcelain or plastic fabricated in a dental lab, which is cemented to the front of the teeth to cover gaps, whiten stained teeth, or reshape chipped or broken teeth. technology will help circuit board fabricators achieve increased circuit density and greater performance at lower costs. Upon the completion of our Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. joint venture plant and this one in Taiwan, together with our existing Hauppauge facility, we will be able to supply the high volume requirements of circuit board fabricators and electronics OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and producers on a global basis." Dr. Cheng Ming Lee, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Fidelity Venture Capital Corp., said, "We are pleased to join Compositech in introducing their high performance, multilayer laminates to the Asian market. We believe that their laminate technology is ideally suited for the complex, multilayer boards that the electronics industry increasingly requires." Compositech Ltd. develops, produces and markets innovative and superior copper-clad and fiberglass epoxy laminates used to make printed circuit boards which are essential components of personal computers, workstations, data communication and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. equipment. Compositech has been issued 25 U.S. and foreign patents covering its reinforced plastic laminates for use in the production of printed circuits and the process and the equipment for making such laminates. The Taiwan project will be Compositech's second international joint venture. In October 1997, Compositech agreed on a joint venture to build a laminate plant in Montreal, Canada, which is fully funded. Fidelity Venture Capital Corp., one of five high tech venture capital funds Venture Capital Funds An investment fund that manages money from investors seeking private equity stakes in small and medium-size enterprises with strong growth potential. Notes: headed by Dr. Lee, is active in making high tech equity investments in Taiwan and the U.S. In 1996, one of Dr. Lee's venture capital funds made a prior equity investment in Compositech Ltd. Dr. Lee's funds assist portfolio companies in raising capital, strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. and marketing their products in the Far East. -0- The statements made in this press release contain certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 that involve a number of risks and uncertainties, including final funding of the project. Actual events or results may differ from the Company's expectations. In addition to the matters described in this press release, risk factors listed from time to time in the Company's SEC reports and filings, including, but not limited to, its Quarterly Report on Form 10-QSB for the quarter ended September 30, 1997 as well as its report on Form 10-KSB for the year ended December 31, 1996, may affect the results achieved by the Company. CONTACT: Porter, LeVay & Rose, Inc. Martin Skala John Chuhran (212) 564-4700 or COMPOSITECH LTD. Fred Klimpl, President (516) 436-5200 |
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