- Agreement Includes Property Lease-Back
MILPITAS, Calif., March 13 /PRNewswire-FirstCall/ -- (OTC: SIPX.PK) Sipex
Corporation today announced the completion of the sale and property lease-back
of its Hillview facility in Milpitas, California, to Mission West Properties
L.P.
The sale was made possible due to the previously announced transfer of the
Sipex fabrication processes to Hangzhou Silan Microelectronics Co., Ltd. and
Hangzhou Silan Integrated Circuit Co., Ltd., located in Hangzhou, China. The
agreement includes the provision for Sipex to enter into a five year lease-
back of the property.
"This transaction will produce an estimated $13.4 million in proceeds.
From this amount, $7.0 million will be used to repay and extinguish the
Company's debt and the remaining $6.4 million will be used to fuel the growth
of the Company without diluting shareholder interest," said Ralph Schmitt, CEO
of Sipex. "We are using all the appropriate resources to finance the Company
to complete the transformation to a fabless semiconductor company."
About Sipex Corporation
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.
Forward-Looking Statements
This press release contains forward-looking statements. Statements
regarding the Company's beliefs, plans, expectations or intentions regarding
the future are forward-looking statements, within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the Exchange
Act. All such forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to significant risks and uncertainties.
In particular, the forward-looking statements include the statements regarding
the future growth of the Company, the Company's current financing goals and
the Company's transition to a fabless semiconductor company. These statements
are just predictions and involve risks and uncertainties, such that actual
results may differ significantly. These risks include, but are not limited to,
the risk that due to overall market conditions or as a result of issues unique
to the Company, the Company may not be able to achieve the anticipated growth,
may not be able to obtain financing on terms that are acceptable to the
Company and may encounter unforeseen difficulties in its transition to a
fabless semiconductor company. The Company disclaims any intention or
obligation to publicly update or revise any forward-looking statements,
whether as a result of events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.
For additional information, contact:
Ray Wallin, CFO
Tel: 408-934-7500
Fax: 408-935-7678
Email: RWallin@sipex.com
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:
Ray Wallin, CFO of Sipex Corporation,
+1-408-934-7500, or fax, +1-408-935-7678, or RWallin@sipex.com
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