Photon Control Updates Micronor Asset Acquisition
Builds on strategy to broaden and diversify Photon Control into multiple sectors and customers.
Expands addressable market through the addition of new products.VANCOUVER, British Columbia, May 20, 2020 (GLOBE NEWSWIRE) — Photon Control Inc. (“Photon Control” or the “Company”) (TSX: PHO), a leading developer and supplier of optical measurement technologies and systems, is pleased to provide an update on the acquisition of Micronor Inc’s. (“Micronor”) assets, described below, which was completed on April 3, 2020 for cash consideration of CA$844,000. This accretive acquisition increases the Company’s product offering and expands its addressable market beyond the semiconductor capital equipment market.The acquisition of Micronor’s assets includes but is not limited to:All intellectual property, including trademarks and two patents associated with their product lines2019 Revenues of US$1.4 millionApproximately US$250,000 in inventoryA fully equipped leased manufacturing facility in Camarillo, CA providing greater business continuity and flexibilityFounder and Chief Engineer Robert Rickenbach will be joining Photon Control with over 40 years of industry experience. Mr. Rickenbach was recently awarded “2020 Engineer of the Year” by the IEEE Buenaventura Section in recognition of his innovations and contributions to fiber optic testing and sensing technology. “The acquisition of Micronor, accelerates our growth strategy of broadening our product and intellectual property portfolio and selling into new markets,” said Nigel Hunton, Chief Executive Officer. “We welcome Micronor’s co-founders, Robert Rickenbach and Dennis Horwitz, with their decades of technology development experience to Photon Control. We see many synergies in our highly complementary technologies, products and shared core competencies that will benefit our semiconductor and other high-technology customers and increase long-term shareholder value.”Photon Control’s growth strategy is to continue to build not only on its existing relationships with the semi conductor industry but also outside of it. Nigel Hunton added, “It is important that we never lose focus on our core and key customers in the semi conductor industry but there is a great opportunity to use our temperature and position sensors in other industries including but not limited to medical devices and flat panel. We will look to continue to invest in our technologies and products to grow our offerings and utilize our cash position (March 31, 2020 – CA$41 million) to seek out further accretive and synergistic transactions.”About Photon Control Inc.
Photon Control Inc. designs, manufactures and distributes a wide range of optical sensors and systems to measure temperature and position. These products improve performance and enable innovation for our customers and are used in the semiconductor and other high-technology industries. Photon Control Inc.’s high-quality products provide industry-leading accuracy, reliability and quality in the most extreme conditions and are backed by a team of experts providing a variety of on-site and remote services including custom design, installation, training and support. The Company is headquartered in an ISO 9001:2015 manufacturing facility in Vancouver, BC, has sales and engineering offices in California and a sales distribution network across the globe. Photon Control Inc. is listed on TSX, trading under the symbol “PHO.” Additional information about the company can be found at https://www.photoncontrol.com/investors/About Micronor
Micronor, which was founded in 2003, develops and manufactures fiber optic kinetic sensors out of an ISO 9001:2015 certified facility in Camarillo, California. Based on an innovative and patented technology, these sensors accurately measure rotary and linear position while maintaining immunity from lightning, radiation and magnetic fields. This enables customers in the industrial, medical, transportation, aerospace and infrastructure markets to accurately control and monitor their critical devices in hostile environments. Photon Control also acquired their website and further details are available at https://micronor.com/Investor Relations Contact:
This news release contains “forward-looking statements” within the meaning of applicable Canadian securities legislation. These statements generally can be identified by use of forward-looking words such as “may”, “will”, “could”, “would”, “should”, “might”, “expect”, “estimate”, “anticipate”, “intend”, “consider”, “believe”, “plan”, “project”, “assume”, “strategy”, “goals”, “objectives”, “potential”, “possible”, “confident” or “continue” or the negative thereof or similar variations. Such forward-looking statements concern the business and anticipated financial performance of the Company and include, without limitation, the Company’s growth outlook.These forward-looking statements are based on certain factors and assumptions, including, without limitation: the Company’s ability to develop, manufacture and sell new products that meet the needs of its customers and gain commercial acceptance; the Company’s ability to continue to sell its products in line with expected quantity, price and delivery times; the Company’s ability to attract new business; continued and future demand for the Company’s products; continued sales to the Company’s major customers; the Company’s operations not being adversely affected by supply, operating, cyber security, litigation or regulatory risks; the Company’s ability to react to the cyclical nature of the semiconductor industry; the Company’s ability to enhance revenue diversification and open new market opportunities; and, the Company’s expectations regarding market risk, including interest rate changes, tax changes and foreign currency fluctuations.Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation: uncertainties relating to the market for the Company’s products and maintaining a stable level of orders; fluctuations in revenue as a result of volatility in the markets and product mix; risks relating to the Company’s present reliance on its major customers for the majority of its sales; risks relating to the Company’s reliance on the financial health of and timing of cycles in the semiconductor industry; risks relating to the development of competing technologies and the possibility of increased competition; the effect of slow growth in the United States, the Company’s principal market, as well as other economies and other economic trends and conditions in the markets that the Company and its customers serve; risks associated with the spread of the COVID-19 virus; risks associated with the adverse impact of climate change; risks associated with technical difficulties or delays in product introductions, improvements, implementation; uncertainties in product pricing or other initiatives of the Company and its competitors; uncertainties in factors that may result in a reduction in capital expenditures and/or delayed buying decisions affecting demand for the Company’s products; risks relating to currency fluctuations, particularly between the Canadian and United States dollars; risks in pursuing additional development projects to support existing customers or pursue other business opportunities; and such other risks as are identified in the Company’s Annual Information Form and other disclosure documents filed on SEDAR at www.sedar.com.The foregoing assumptions, risks and uncertainties are not exhaustive of the items that may affect our forward-looking statements. Should underlying assumptions prove to be incorrect or one or more of these risks and uncertainties materialize, actual results may vary materially from those described in the forward-looking statements. The Company’s forward-looking statements are based on beliefs, expectations and opinions of management on the date the statements are made.For the reasons set forth above, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements included herein if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.