Jmar Closing Vermont Plant
SAN DIEGO, Calif., Sept. 24, 2007 -- Jmar Technologies Inc., a developer of laser, high-resolution imaging and photonics technologies, announced today it has agreed to cease or sell most of its Vermont business and to move the remaining operations to its San Diego headquarters.
The move is part of an agreement, made last week, for up to $7.5 million of secured debt financing with Laurus Master Fund Ltd., a New York-based institutional fund that specializes in support to small and microcap companies. Jmar said it will also pay Laurus royalties on the sale of Jmar's products, with payments beginning 180 days after closing.
“The rationale behind Jmar releasing its interest in the Vermont operations comes down to one primary objective -- focus”, said Jmar president and CEO Neil Beer, PhD. “By consolidating our operations in one location, and limiting our development efforts to a few select technologies, we can now give undivided attention and resources to developing products that address not only commercial market needs, but important homeland security and military applications as well.”
Jmar's Vermont Systems Operation unit, located in Burlington, carries out manufacturing engineering, production, integration and test of Jmar’s new products. The Vermont operation also applies its engineering and manufacturing expertise to the contract development and production of new products. For example, as the design and manufacturing contractor for FemtoTrace Inc., the unit builds the READ trace chemical sensor for real-time detection of extremely small quantities of organics. The READ equipment has uses in environmental contamination detection and homeland security applications. It also builds lithography steppers for the semiconductor market integrating Jmar’s collimated plasma lithography light source, and introduced an optical angular scanning imaging system, VersaCAM, a rapid scanning optical microscope.
Jmar's Sensors Group and research division are also located in San Diego. Jmar has a total of about 40 employees, about a dozen of them in San Diego.
The company said proceeds from the financing will be placed in a restricted cash account in Jmar's name and released according to an operating budget, with a reserve for prepayment of the first year's interest. The loan has a maturity date of two years.
Laurus was also issued warrants to purchase 119 million shares of common stock of the company, Jmar said. The warrants have a term of 10 years and an exercise price equal to the par value of the company's common stock ($0.01 per share).
"The warrants may not be exercised to the extent that the number of outstanding shares plus shares reserved for issuance exceeds the company's current authorized shares of common stock, unless and until the company obtains shareholder approval for an increase in the authorized shares to accommodate such an exercise," the company said.
For more information, visit: www.jmar.com
- The technology of generating and harnessing light and other forms of radiant energy whose quantum unit is the photon. The science includes light emission, transmission, deflection, amplification and detection by optical components and instruments, lasers and other light sources, fiber optics, electro-optical instrumentation, related hardware and electronics, and sophisticated systems. The range of applications of photonics extends from energy generation to detection to communications and...
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