Deal Description

Company is seeking US$25 million to set up a pilot-production, training and R&D facility with capacity of 5000 wafers/month (4” – 6” wafer size) in Singapore. This multipurpose facility requires US$40 million. It is estimated it will generate an annual revenue between US$40 million and US$50 million from LED-chips sales alone when in full operation. The average margin is estimated to be 38%. We are seeking funding of US$25 million for an equity of 30% of the enlarged shares of the company. Additional US$15 million will come from either government grants, debt financing or profit from operation. IPO or acquisition will be our exit plan in 5 years. This investment in Year 1 can also enable an overseas manufacturing facility by Year 3 while providing all the technology support and training; while all major risks are validated before a 10x-100x investments for a production scale manufacturing facility. This roadmap has already been successfully tried and proven by Chinese companies who have invested 100's of M$ to build capacity in this domain for which the world is now looking for credible supply chain alternatives.

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