TEXT OF PRESS RELEASE DATED MAY 18, 2001
COMPANY CONTACT: AGENCY CONTACT:
Debra Scott Dave Richardson
Genus, Inc. Positio, Inc.
Tel: (408) 747-7140 x1407 Tel: (650) 815-1006 x108
Email: dscott@genus.com Email: dave@positiopr.com
GENUS CLOSES PRIVATE PLACEMENT OF
COMMON STOCK AND WARRANTS
SUNNYVALE, Calif., May 18 /PRNewswire/ -- Genus, Inc. (Nasdaq: GGNS - news)
announced that it has entered into definitive agreements to receive up to $11.5
million in net proceeds for the sale of its common stock and warrants to
purchase common stock. The stock and warrants have been placed with several
institutional and private investors.
The investors will receive 2,541,787 shares of common stock, and warrants to
purchase 1,270,893 shares of common stock in exchange for aggregate proceeds of
approximately $7.6 million. Upon the exercise of the warrants, which are priced
at $3.50 per share, the company will receive an additional $4.4 million. The
proceeds amount is based on Genus' average closing stock price for the 20
trading days prior to May 7, 2001. The closing date of this transaction was May
17, 2001. The total dilution of Genus' outstanding common stock will be slightly
less than 20 percent, if all of the warrants are exercised.
Net proceeds from the private placement will be used to fund inventory, sales
and sales support to address new customers, working capital and general
corporate purposes.
Bill Elder, chairman and CEO of Genus, stated, "We are very pleased to have been
successful in raising equity capital during extremely difficult financial market
conditions. This equity will allow us to continue executing our growth strategy
for 2001 and beyond."
Genus' growth strategy includes growing its customer base from the current six
customers up to eight to 10 customers by the end of 2001, and increasing annual
revenues by 30 percent. The company reported annual revenues of $40.6 million
for the year 2000, which was a 43 percent increase over 1999 revenues. The
company is leveraging its atomic layer deposition (ALD) technology as a
substantial means of gaining new customers in new markets. ALD holds promise as
an enabling solution to fabrication problems posed by shrinking electronic
geometries. The company has already attracted several new customers with its ALD
capabilities.
The securities sold in this private placement have not been registered under the
Securities Act of 1933 and may not be offered or sold in the United States in
the absence of an effective registration statement or exemption from
registration requirements. The company expects to file a registration statement
on Form S-3 within 30 days after the closing of the transaction for purposes of
registering the resale of the shares of common stock issued in the private
placement. The warrants in this private placement will become exercisable when
the registration statement is declared effective by the Securities and Exchange
Commission (SEC).
Forward-Looking Statements
This press release contains forward-looking statements regarding the company's
anticipated exercise of options granted in this private placement, business and
customer growth, revenue growth expectations, and acceptance of ALD technology
by the marketplace. These forward-looking statements are subject to a number of
risks and uncertainties. These contingencies include but are not limited to the
company's stock prices precluding exercise of warrants granted, actual customer
orders received by the company, the extent to which the company's products are
accepted by the marketplace, the timing of final acceptance of products by
customers and general conditions in the semiconductor equipment market and the
economy in general. Genus assumes no obligation to update this information.
Additional risks and uncertainties are discussed in the Management's Discussion
and Analysis of Results of Operations contained in Genus' Annual Report on Form
10-K for the fiscal year ended December 31, 2000, and in subsequently filed
quarterly reports on Form 10-Q filed with the SEC.
About Genus
Founded in 1982, Genus, Inc. designs, manufactures and markets capital equipment
and deposition processes for advanced semiconductor manufacturing as well as for
other, emerging non-semiconductor applications. Genus offers various thin film
deposition modules using its own production-proven equipment and processes for
both chemical vapor deposition (CVD) and atomic layer deposition (ALD). The
deposition processes are used to manufacture integrated circuits for the
computer, communications, medical, military, transportation and consumer
electronics industries. Genus' customers include semiconductor manufacturers
located throughout the United States, Europe and the Pacific Rim including Korea
and Japan. Company headquarters are in Sunnyvale, California. For additional
information visit Genus' web site at www.genus.com.
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SOURCE: Genus, Inc.