Get instant alerts when news breaks on your stocks. Claim your one week free trial for StreetInsider Premium here.
Los Angeles, California, August 01, 2022 McapMediaWire
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 recently announced capital increases, debt financing and the transition towards customer acquisition. Shareholder updates from CEO Doug Croxall are included in full below.
The past few months have been some of the toughest in recent memory for our economy, and even tougher for capital markets. I am pleased to report that during this tumultuous period, Crown has successfully completed the capital increases necessary to execute our manufacturing plans. On July 20, 2022, the Company announced an underwritten public offering of $1.0 million of common stock at $0.80 per share, and the offering did not include any investor warrants. This offering is complementary to our series D preferred stock round, convertible into common stock at an above-market price, from which $1.1 million was raised. These direct equity investments are some of the critical elements needed to enable Crown to access the debt financing for which we entered into a term sheet earlier this summer.
As noted in previous earnings calls, access to non-dilutive debt financing is particularly important as it will allow us to complete planned production lines, have sufficient working capital through the end of 2023 and begin delivery and installation of Smart Windows. Inserts to our customers. The value of our intellectual property has been instrumental in supporting debt financing. Crown’s independent intellectual property valuation indicated a combined fair market value (FMV) of patents and trade secrets of $94.4 million.
Proceeds from future debt financing and recent equity financing would enable us to build our new reel-to-reel lines allowing Crown to produce film of any length and at widths between 12 inches and 72 inches. Once the new lines are producing at full capacity, Crown expects annualized Smart Window Insert revenues of approximately $220 million and EBITDA of $40 million.
Initially, our Smart Windows Inserts should be produced in limited series to meet the orders of our first customers. With customer feedback on the performance, design and use of our first generation smart window insertwe will iterate and 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 of different widths as required.
Once our new production lines are operational, Crown can actively begin to acquire new US customers. Crown’s initial target market is office properties in the United States. Crown Smart Window Insert can reduce HVAC energy costs for building owners and help reduce the building’s carbon footprint. Smart window insertion will be sold as a renovation product for existing buildings.
Thank you all for your trust and support and I look forward to providing further updates as we approach product delivery later this summer.
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. 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.
IR Email: [email protected]
Source: Crown Electrokinetics: www.crownek.com