MEMSIC Announces Receipt of Unsolicited Non-Binding Proposal
ANDOVER, Mass., Nov. 20, 2012 (GLOBE NEWSWIRE) -- MEMSIC, Inc. (Nasdaq:MEMS),
a leading MEMS solution provider, today announced that its Board of Directors
has received an unsolicited, non-binding proposal from IDG-Accel China Growth
Fund II L.P., for itself and on behalf of its affiliated funds and certain
nominees (collectively, "IDG"), to acquire all outstanding shares of common
stock of MEMSIC not currently owned by IDG or its affiliates for cash in the
amount of $4.00 per share.
In response to the proposal, the Company's Board of Directors has established
a Special Committee of the Board comprised of its three independent directors.
The Special Committee has engaged RBC Capital Markets, LLC as its financial
advisor to assist it in evaluating this proposal and all other strategic
alternatives, and will consider the IDG proposal and related matters carefully
in due course, consistent with the Board's fiduciary duties to act in the best
interest of stockholders.
The Board of Directors cautions MEMSIC stockholders and others considering
trading in its securities that neither the Board of Directors nor the Special
Committee has made any decision with respect to the IDG proposal and that
there can be no assurance that any definitive offer will be made or accepted,
that any agreement will be executed or that any transaction will be
MEMSIC does not intend to comment further regarding this proposal or its
evaluation of strategic alternatives, unless a specific transaction is
recommended by the Board of Directors.
Headquartered in Andover, Massachusetts, MEMSIC, Inc. provides advanced
semiconductor sensor and system solutions based on integrated micro
electromechanical systems, or MEMS, technology and mixed signal circuit
design. Its accelerometer products are used to measure tilt, shock, vibration
and acceleration, and have a wide range of applications such as mobile phones,
automotive safety systems and video projectors. MEMSIC combines proprietary
thermal-based MEMS technology and advanced analog mixed signal processing
circuitry design into a single chip using a standard complementary metal-oxide
semiconductor, or CMOS, process.
For further information, please visit www.memsic.com.
Safe Harbor Statement
Statements included in this press release which are not historical in nature
are forward-looking statements made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Such statements are
based upon the current beliefs and expectations of the company's management
and are subject to significant risks and uncertainties. Actual results may
differ materially from those set forth in the forward-looking statements. When
used in this press release the terms "anticipate," "believe," "estimate,"
"expect," "may," "objective," "plan," "possible," "potential," "project,"
"will" and similar expressions identify forward-looking statements. Important
factors that could cause actual results to differ include those identified
under the heading "Risk Factors" in the company's annual report on Form 10-K
for the year ended December 31, 2011, as well as the following: our limited
operating history makes it difficult to evaluate our business and prospects;
our operating results may fluctuate and are difficult to predict and if we do
not meet financial expectations of securities analysts or investors, the price
of our common stock will likely decline; we do not have long-term purchase
commitments from our customers, and our ability to accurately forecast demand
for and sales of our products is limited, which may result in excess or
insufficient inventory and uncertainty and volatility with respect to our
revenue from period to period; we depend on a limited number of customers for
a high percentage of our revenues, and the loss of, or a significant reduction
in orders from, any of these customers would significantly reduce our
revenues; our products are complex and defects in our products could result in
a loss of customers, damage to our reputation, decreased revenue, unexpected
expenses, loss of market share and warranty and product liability claims; we
may not be able to manage our business growth effectively, and failure to do
so could strain our management, operating and other resources, which could
materially and adversely affect our business and growth potential; and the
average selling prices of products in our markets have historically decreased
rapidly and will likely do so in the future, which could harm our gross
margins and results.
The forward-looking statements contained in this press release are made as of
the date hereof, and we do not undertake any obligation to update any
forward-looking statements, whether as a result of future events, new
information or otherwise.
CONTACT: Investor Contact:
(978) 738-0900 x240
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