Deswell Industries completes private placement of common stock; Behringer Becomes 10% Beneficial Owner; Deswell Named Major Chinese Manufacturer for Behringer.HONG KONG--(BUSINESS WIRE)--Aug. 1, 1996--Deswell Industries, 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 NM Symbols: DSWLF, DSWWF) today announced the Company has completed a private placement of 455,000 Common Shares to Mr. Uri Behringer, 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. and principal shareholder of Behringer Spezielle Studiotechnik GmbH ("Behringer"), one of Deswell's largest customers, for an aggregate cash consideration of US$4,095,000. The private placement represents a 10% shareholding interest in the Company and includes a two year lockup agreement lockup agreement A contractual offer of valuable assets or stock made by a takeover target to the suitor deemed most acceptable to management. A lockup agreement tends to discourage unwanted suitors, but it may penalize the target firm's stockholders because . The selling group Selling Group All financial institutions involved in selling or marketing a new issue of debt or equity but not necessarily participating in the underwriting consortium. Notes: in this offering was Leesha Holdings Limited, which consists of the Founding Shareholders, Mr. Lau, Mr. C.P. Li and Mr. C.W. Leung. Following the transaction, Deswell will be named Behringer's major-source manufacturer of plastic and electronic products in China. Mr. Richard Lau, Chief Executive Officer stated "I am very proud to announce Behringer's long-term commitment to Deswell. This investment is a vote of confidence on behalf of Behringer in Deswell's growth prospects, driven by our success in fulfilling Behringer's needs for reliable, high quality parts and components. Deswell has now solidified its relationship with Berhringer and provides us with the opportunity to greatly expand our sales to a customer who historically has been one of our largest clients." Behringer, based in Germany, is an international manufacturer of studio quality audio products including mixers, amplifiers and audio processors. Deswell manufactures injection-molded plastic parts and components and electronic products and subassemblies for original equipment manufacturers ("OEMs") and contract manufactures at its factories in the People's Republic of China. The Company produces a wide variety of plastic parts and components used in the manufacture of consumer and industrial products; printed circuit board assemblies using surface mount technology ("SMT (1) (Surface Mount Technology) See surface mount. (2) (Station ManagemenT) An FDDI network management protocol that provides direct management. Only one node requires the software. SMT - Station Management "), and pin- through hole ("PTH PTH abbr. parathyroid hormone Parathyroid hormone (PTH) A chemical substance produced by the parathyroid glands. This hormone is a major element in regulating calcium in the body. ") interconnection technologies; and finished products such as telephones, telephone answering machines and sophisticated studio-quality audio equipment and computer peripherals. The Company's customers include Mitsubishi Electric (H.K.), Mita Industries (H.K.) Limited, Nam Tai Electronics (Shenzhen) Co. Limited, Inter-Tel Incorporated, Behringer spezeiller studytechnik GMBH and Shakespeare (H.K.) Limited. CONTACT: Lippert/Heilshorn & Associates, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of John Nesbett, 212/838-3777 ext. 101 |
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