ARROWHEAD SELLS SUBSIDIARY AONEX TECHNOLOGIES TO AMBERWAVE SYSTEMS FOR UP TO $7.95 MILLION PLUS ROYALTY
Pasadena, CA - May 6, 2008 - Arrowhead Research Corporation announced today the sale of its majority-owned subsidiary, Aonex Technologies, to AmberWave Systems. Under the terms of the deal, AmberWave will pay Aonex shareholders up to $7.95M in earn-out payments, plus a running royalty on sales of solar products incorporating Aonex's technology.
Aonex Technologies was launched in 2004 by Arrowhead and Caltech Professor Dr. Harry Atwater to commercialize a materials integration technology developed in Dr. Atwater’s lab for high efficiency solar cells. The Company later expanded its focus and product development efforts to address the growing LED and laser markets. Aonex’s primary product is an innovative substrate that could enable the fabrication of higher efficiency compound semiconductor devices at lower cost and higher yields.
AmberWave Systems is a leader in the research and development of advanced materials technologies. AmberWave Systems focuses on methods for the integration of dissimilar semiconductor materials to enable high-performance devices at low manufacturing costs. Aonex’s technology is expected to enhance AmberWave’s existing technology portfolio and enable AmberWave to move into new, high-growth markets.
“AmberWave’s technical capabilities and business expertise make it the perfect company to bring Aonex’s products to market,” said Aonex CEO and co-founder Sean Olson. “There is a shared vision of using materials integration to develop better, more cost effective semiconductor devices.”
“The strong synergies between Aonex and AmberWave made selling Aonex the right decision,” said Chris Anzalone, CEO of Arrowhead. “AmberWave is well positioned to scale Aonex’s prototypes and customer traction into compelling businesses in the optoelectronic and solar markets.”
As part of the acquisition, Aonex founder Dr. Harry Atwater, will continue to support the development of the technology. In addition, AmberWave will take over Aonex’s Pasadena operations.
About Arrowhead Research Corporation
Arrowhead Research Corporation (www.arrowres.com) (NASDAQ:ARWR) is a publicly-traded nanotechnology company commercializing new technologies in the areas of life sciences, electronics, and energy. Arrowhead is building value for shareholders through the progress of majority owned subsidiaries founded on nanotechnologies originally developed at universities. The company works closely with universities to source early stage deals and to generate rights to intellectual property covering promising new nanotechnologies. Currently, Arrowhead has four subsidiaries commercializing nanotech products and applications, including anti-cancer drugs, RNAi therapeutics, carbon-based electronics and compound semiconductor materials.
About Aonex Technologies
Aonex Technologies, Inc. is a developer of proprietary substrates that reduce the production cost of devices such as blue LEDs and high-efficiency solar cells. The Company is based in Pasadena, California.
About AmberWave Systems
Founded in 1998, AmberWave Systems has become a leader in the research, development and licensing of advanced technologies for semiconductor manufacturing. By funding and guiding university research, AmberWave Systems is bringing new technology developments to fruition through patents and technology licensing. In conjunction with its university research projects, AmberWave Systems conducts its own research, development and limited manufacturing in its semiconductor fabrication facility in Salem, New Hampshire. In addition, AmberWave Systems collaborates with other technology focused companies to further expand and develop its research. For more information about the company, please visit its Web site at http://www.amberwave.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This news release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including the recent economic slowdown affecting technology companies, the future success of our scientific studies, our ability to successfully develop products, rapid technological change in our markets, changes in demand for our future products, legislative, regulatory and competitive developments and general economic conditions. Our Annual Report on Form 10-K and 10-K/A, recent and forthcoming Quarterly Reports on Form 10-Q and 10-Q/A, recent Current Reports on Forms 8-K and 8-K/A, our Registration Statement on Form S-3, and other SEC filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
Contacts
Virginia Dadey; Vice President, Investor Relations
Telephone: 212.541.3707
Email: vdadey@arrowres.com