Spire Corporation (Nasdaq: SPIR), a global solar company providing capital equipment to manufacture photovoltaic (PV) modules, turnkey manufacturing lines and solar PV systems, today reported that it has completed the sale of substantially all of the assets of its hemodialysis catheter business to Bard Access Systems, Inc. The terms of the sale were modified since the original announcement of the transaction in September 2009. The maximum purchase price payable under the agreement is $12.5 million, including $9.4 million that was paid at closing to Spire, $3.0 million payable based on the achievement of certain milestones, and $100,000 to be paid to two employees of Spire, as consideration for their execution of non-competition agreements. A portion of the assets sold by Spire in the transaction were transferred to Bard Access Systems at the closing, and the remaining assets will be transferred upon the completion of a product recall related to those assets, which is expected to occur in the second quarter of 2010. Until the remaining assets are transferred by Spire, Spire will continue to manufacture and supply to Bard Access Systems certain hemodialysis catheter products under the terms of an exclusive distribution agreement.
Roger G. Little, Chairman and CEO of Spire Corporation, said, "As stated previously, the divestiture of the hemodialysis catheter business at this time is clearly in Spire''s best strategic interest. The closure of this transaction helps to solidify the Company''s cash position and permits Spire to take advantage of the substantial growth opportunities in the solar market."
Spire Biomedical''s Surface Treatment Business, which provides coating and surface modification services primarily to medical device customers, will continue normal operations.
About Spire Corporation
Spire Corporation is a global solar company providing capital equipment to manufacture PV modules, turnkey manufacturing lines and solar PV systems. Spire Semiconductor provides processing technology for Spire''s silicon solar cell lines and produces gallium arsenide cells for solar concentrator systems. For corporate or product information, contact Spire Corporation at 781-275-6000, or visit www.spirecorp.com.
Certain matters in this news release may contain forward-looking statements within the meaning of the federal securities laws. These statements reflect the Company''s current views with respect to future events and are based on its management''s current assumptions and information currently available. Actual results may differ materially due to numerous factors including, without limitation, the ability of Spire to satisfy the remaining purchase price milestones andthe risks and uncertainties described in the Company''s annual report on Form 10-K/A for the year ended December 31, 2008; and other factors identified from time to time in the Company''s periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements contained herein.
Contacts:
Spire Corporation
Christian Dufresne, 781-275-6000
Treasurer &
CFO
