Nanotechnology company Arrowhead Research Corporation has increased its ownership in its electronics films subsidiary Unidym, Inc. to 70%. The stock swap transaction with existing Unidym shareholders follows recent achievements by the company including nearing commercialization in target display markets, developing its partnership model and lowering expenses.
Unidym received an investment from TEL Venture Capital, Inc. in December last year to aid in developing equipment for use in the production and integration of Unidym’s films.
The breakdown of the particulars of the agreement is as follows (including some previously agreed details):
- The agreement will see the exchange of approximately 750,000 shares of newly issued Arrowhead common stock in exchange for an equal number of Unidym Series C preferred stock with Unidym stockholders.
- Approximately 1.9 million shares of Arrowhead common stock will be issued and exchanged for approximately 1.1 million shares of Unidym Series C Preferred Stock and 833,333 shares of Unidym Series C-1 Preferred Stock.
- Arrowhead’s investment of approximately $875,000 of cash and the conversion of $950,000 of intercompany loans into Unidym Series C-1 Preferred Stock.
- The issuance and exchange of approximately 1.3 million shares of Arrowhead common stock to several Unidym stockholders for an equal number of Unidym Series A Preferred Stock.
“Our ownership increase in Unidym is a key component of our 2009 strategic plan to capture value generated from Unidym’s penetration of high-growth touch-screen and LCD markets,” stated Dr. Christopher Anzalone, President and Chief Executive Officer of Arrowhead.