Knobias Clip Report (4-22-2008)
Submitted By Knobias ClipReport
LSCG: CEO Discusses Acquisition of Lighting Partner BV
The Chairman and CEO of Lighting Science Group Corporation (LSCG), Mr. Govi Rao, commented today in a conference call on the acquisition of Lighting Partner BV (”LPBV”), a manufacturer of a broad range of LED and High-intensity Discharge (”HID”) lighting solutions for residential, commercial, and retail applications based in The Netherlands. LPBV focuses on the latest energy efficient light sources and operates well-equipped production facilities in the Netherlands, Eastern Europe and Thailand.
As consideration for acquiring the outstanding common stock of LPBV, LSCG paid the former shareholders of LPBV $5 million and issued a total of 4.632 million shares of LSCG common stock (representing approximately 16% and 13% of the actual and fully diluted shares of LSCG common stock outstanding respectively). LSCG also granted the former shareholders of LPBV certain piggyback registration rights and assumed expenses of approximately $1.2 Million incurred due to change of control of LPBV.
In conjunction with the acquisition of LPBV, the Company also announced that it has sold 2,083,333 shares of common stock to LED Holdings, LLC, for proceeds of $10,000,000.
According to Mr. Rao, “This combination expands our presence in the global lighting market and gives us a significant competitive position in the emerging LED space. It provides us with a strong foothold in Europe and Asia. It also fits in very well with our strategic initiatives to become a ‘game changer’ in this space.”
“This acquisition creates a unique global company with the ability to provide a number of lighting solutions We believe that it will accelerate product development, introduction and distribution.”
Due to their long source life and high reliability, LEDs requires less frequently recycling than conventional light sources. In addition, with the rapid advancement in performance of LEDs, they are up to four times more efficient than than traditional incandescent or halogen bulbs, making them the most energy-efficient and cost-effective lighting option over the system life. LEDs don’t contain mercury or other hazardous materials like compact fluorescent bulbs do, so they can be handled and disposed of safely.
Mr. Rao added, “In general, the LED fixture market is expected to increase from $2 billion to $5 billion by 2011. We want to be part of this growth and influence that growth.”
