Uni-Pixel signs letter of intent with Future Tech for XTouch production in China
UniPixel signed a non-binding letter of intent to enter into a strategic transaction with Future Tech, under which Future Tech will produce UniPixel's XTouch sensors in Changzhou City, Jiangsu Province in China. Future Tech expects to form a joint venture that will own and operate a manufacturing facility in Changzhou, China. Future Tech will also be responsible for creating an organization to sell, market and distribute metal mesh touch screen sensors to original equipment manufacturers headquartered in the Asia Pacific region. Future Tech intends to manufacture sensors for UniPixel, subject to agreement on volume and pricing. A definitive agreement is expected to be executed during September. The letter of intent provides that Future Tech will pay UniPixel up to $5.1M for rights, know-how and manufacturing assets that will be transferred to the joint venture; $2; will be paid at an initial closing, with the remaining amounts payable upon equipment qualification and manufacturing milestones. The joint venture will make royalty payments to UniPixel based on an IP license grant. UniPixel will continue to manufacture and conduct research and development for new products in Colorado Springs and will also purchase sensors from Future Tech.