MILPITAS, Calif., Jan. 19 /PRNewswire-FirstCall/ -- Sipex Corporation
(OTC: SIPX.PK) announced that it has completed a $7 million private loan
financing in which it issued a 9% Secured Note with Convertible Interest Due
January 19, 2008 to Rodfre Holdings LLC, an affiliate of Alonim Investments
Inc., Sipex's principal shareholder. The issuance of the Note was not
registered under the Securities Act of 1933 and may not be offered or sold in
the United States absent registration or an exemption from the registration
requirements.
"This additional funding allows the company to continue in building a
lasting analog business," said CEO Ralph Schmitt.
The Note is secured by a deed of trust on Sipex's headquarters property
located in Milpitas, California. Accrued interest on the Note is convertible
into common stock of the company at the option of the holder on January 19,
2007 and January 19, 2008. The conversion price will be the volume weighted
average price for sales of the common stock on the Pink Sheets electronic
trading market during the twenty trading day period prior to the date of
conversion. The holder of the Note can require repayment of the Note in the
event of a change of control of Sipex or the sale of the property subject to
the deed of trust. The Note is subject to customary events of default.
Furthermore, it is also an event of default if Sipex fails to obtain court
approval in respect of its proposed class action settlement or if more than
20% of the class members opt out of the settlement.
"We continue to improve the capital efficiency of the company as we fund
our move to a fabless model," commented CFO Ray Wallin. "We expect to use
these funds to support product development and go-to-market initiatives
throughout 2006."
About Sipex
Sipex Corporation is a semiconductor company that designs, manufactures
and markets high performance, value-added analog integrated circuits (IC).
Sipex serves the broad analog signal processing market with interface, power
management and optical storage ICs for use in automotive, portable products,
computing, communications, and networking infrastructure markets. The company
is headquartered in Milpitas, California with additional offices in Belgium,
Canada, China, Germany, Japan and Taiwan. Sipex sells products direct and
through its distribution channels. For more information about Sipex, visit
http://www.sipex.com.
Cautionary Statement Regarding Forward-Looking Statements
This release contains certain forward-looking statements that include,
without limitation, statements regarding Sipex's product development
initiatives and statements about Sipex's strategic transition to become a
fabless semiconductor manufacturer. These forward-looking statements are
subject to various risks and uncertainties that could cause actual results to
differ materially, including, but not limited to the possibility that Sipex
will face unforeseen challenges in its transition to a fabless model, will not
have sufficient funds to fully finance its go-to-market product initiative or
that the general economic conditions within the semiconductor design and
manufacturing industry will adversely affect Sipex's business and market
opportunities.
For Further Information Contact:
Clyde Ray Wallin
Chief Financial Officer
Phone: 408-934-7500
Fax: 408-935-7600
SOURCE Sipex Corporation
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Related links:
http://www.sipex.com
Company News On-Call:
http://www.prnewswire.com/comp/111683.html
CONTACT:
Clyde Ray Wallin, Chief Financial Officer of
Sipex, +1-408-934-7500, or fax, +1-408-935-7600
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