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IQE plc : Response to ShadowFall report
IQE plc : Response to ShadowFall report.
About this update from Iqe Plc
[{"type":"text","content":"\n IQE plc : Response to ShadowFall report5 February 2018IQE plc(\"IQE\" or the \"Company\")Response to ShadowFall reportIQE plc (AIM: IQE) notes the report published by ShadowFall Capital & Research LLP (\"ShadowFall\"), which was disseminated to the public on 2 February 2018.The allegations contained within the report are without merit and provide a misleading analysis of the Company's financial position. The central thesis of this report is a fundamental misrepresentation of the profit and cash generation of IQE, especially with respect to the Company's joint venture agreements. IQE would like to directly address the key themes in the report, correct any misinformation that might arise from the report's inaccuracies and assure shareholders that IQE holds itself to the highest standards of corporate governance, transparency and integrity.It is also important to note that ShadowFall states that it holds a short position in IQE and so will duly profit from any near-term reduction in IQE's share price, caused by the allegations in the report. ShadowFall made no attempt to review its report with IQE prior to its publication. The purpose of IQE's joint venturesThe joint ventures in Singapore and Cardiff form an important part of IQE's strategy to be at the leading edge of compound semiconductor innovation, through collaboration with leading universities and supply chain partners. These joint ventures have independent third-party shareholders and are governed by standalone boards, separate management teams and joint venture agreements that establish governance procedures and decision making. As a member of the joint ventures, IQE participates in these boards, but does not have control. These joint ventures are independently audited. The creation of the joint venture in Cardiff was the first cornerstone entity in the development of a globally recognised UK compound semiconductor cluster (CS Connected), which is seeking to create and sustain over 2,000 high skilled, well paid manufacturing jobs for the local and UK economy. This is already making a significant impact in the local economy, including saving 500 jobs in Newport Wafer Fab Ltd, which had been scheduled for closure by its previous owner, the creation of a UK Government funded Compound Semiconductor Applications Catapult, and a number of major technolog...