Business
Kopin Reaches Agreement to Sell, License Certain Assets of SolosTM Products and WhisperTM Audio Technology
WESTBOROUGH, Mass.--(BUSINESS WIRE)-- Kopin Corporation (Nasdaq: KOPN), a leading developer of innovative wearable computing technologies and solutions,
About this update from Kopin Corporation
[{"type":"text","content":" WESTBOROUGH, Mass.--(BUSINESS WIRE)--\nKopin Corporation (Nasdaq: KOPN), a leading developer of innovative wearable computing technologies and solutions, announced that it has entered into an Asset Purchase Agreement (the “Purchase Agreement”) with Solos Technology Limited (the “Buyer”). Pursuant to the Purchase Agreement, Kopin Corporation (the Company) sold and licensed to the Buyer certain assets of its SolosTM (“Solos”) product line and WhisperTM Audio (“Whisper”) technology. On August 8, 2019 Kopin announced its intention to spin out these assets to a group of employees and investors.\n\n\nAs consideration for the transaction, the Company received 1,172,000 common shares representing a 20.0% equity stake in the Buyer’s parent company, Solos Incorporation (“Solos Inc.”). Kopin’s 20.0% equity stake will be maintained until Solos Inc. has raised a total of $7.5 million in equity financing. Kopin will also receive a royalty in the single digits on the net sales amount of Solos products for a four-year period, after commencement of commercial production. Kopin’s Hong Kong employees have been offered employment with the Buyer and most are expected to transition to the new company.\n\n\nUnder the terms of the Purchase agreement, Kopin also has a non-exclusive, limited, fully paid-up, royalty-free worldwide license, including modification of or improvement or enhancement to the Whisper technology, for enterprise and military customers.\n\n\n“This transaction is one of the strategic steps we have taken to monetize our intellectual property (IP) and reduce our cost structure,” said Dr. John C.C. Fan, CEO and Chairman of the Board of Kopin. “We are confident that this focus and dedicated funding will increase the commercialization opportunities for both the Solos product line and Whisper technology. Kopin will benefit through possible future royalties and appreciation of the equity. In addition, we retain the right to continue utilizing Whisper technology with our military and industrial customers, while reducing our development and personnel costs.”\n\n\nDr. Fan concluded, “As a statement of our confidence in the opportunity for Solos and Whisper the outside investors required me and certain members of management to co-invest, and we are pleased to support the new Company.”\n\n\nDr. Fan’s total individual ownership interest is 15.5%...