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Los Angeles, California, June 3, 2022 (GLOBE NEWSWIRE) — Crown Electrokinetics Corp. (NASDAQ: RCDR) (“Crown” or the “Company”), a leading smart glass technology company, today issued a letter to shareholders with an update on the recently announced debt financing term sheet and provides an update on its current and future production line. Shareholder updates from CEO Doug Croxall are included in full below.
Dear shareholders:
I am pleased to share great news for Crown and for its shareholders. Last week, we signed a non-binding debt financing term sheet and expect to complete customary due diligence and final agreements within the next two months. This credit facility is particularly important as it will allow us to complete the planned production lines, have sufficient working capital until the end of 2023 and start the delivery and installation of Smart Windows Inserts™ in our clients.
Use of proceeds from Non-binding term sheet for loan capital
At the end of May, we signed a non-binding term sheet for debt capital. The final agreement is expected to be finalized within the next two months.
Closing this term sheet will allow us to wrap up two key events. The first is to build our two roll-to-roll lines specifically designed for the production of Crown’s DynamicTint™ film and the second is to increase our available cash flow to fund ongoing working capital requirements.
Status of production facilities
This week, some shareholders asked me to explain the difference between our current production line and the future lines that we will build. For the benefit of all our shareholders, I will describe the differences and the planned evolution of the product.
Crown is currently producing DynamicTint™ film on our prototype production facility at our Corvallis facility. We will produce our film in this facility in limited quantities. This method allowed us to test our production processes as well as to develop our generation 1.0 Smart Windows Insert™. Our Corvallis production line will produce 6 inch and 12 inch strips of our DynamicTint™ film for application in our Generation 1.0 Smart Window Insert™.
Initially, our Smart Windows Inserts™ are expected to be produced in limited series to meet orders from our first customers, including Metro Spaces, Hudson Pacific and Brandywine Realty Trust. Together, these three clients have a total of 281 buildings.
With customer feedback on the performance, design and use of our first generation insert, we will develop our second generation Smart Window Insert™. We then plan to transfer production to our two new roll-to-roll production lines capable of manufacturing films ranging from 12 inches to 72 inches in width.
We estimate that these significantly expanded manufacturing facilities could begin to generate revenues of between $220 million and $240 million, with an estimated EBITDA of approximately $40 million on an annualized basis.
Thank you all for your trust and support and I look forward to providing further updates as we approach product delivery later this summer.
Sincerely,
Doug Croxall
President and CEO
About Crown Electrokinetics
Crown is a smart glass technology company and the creator of DynamicTint™ We Make Your Glass Smarter™. Originally invented by Hewlett-Packard (HP, Inc.), our technology allows any glass surface to change from clear to dark in seconds. With applications on a wide range of windows, including commercial buildings, automotive sunroofs, and residential skylights, we partner with leading glass and film manufacturers for mass production and distribution. At the heart of our technology is a thin film powered by an electrically charged pigment that not only replaces common window tints, but is also a more durable alternative to traditional window treatments. With its unique ability to adapt to existing glass, DynamicTint™ offers a myriad of carbon-reducing benefits. The company is backed by a strong patent portfolio.
Safe Harbor Statement: The statements contained in this press release may be “forward-looking statements”. Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions, or other statements regarding our future business or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results could and do differ materially from what is expressed or anticipated in the forward-looking statements due to numerous factors. All forward-looking statements speak only as of the date of this press release, and Crown Electrokinetic Corporation undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.
This press release does not constitute a public offer to sell securities. Any privately offered securities will not be or have not been registered under the Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Electrokinetic crown
IR Email: [email protected]
Source: Crown Electrokinetics: www.crownek.com
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