Kopin receives $15 million strategic investment from Theon

WESTBOROUGH, Mass. - Kopin Corporation (NASDAQ:KOPN), currently valued at $292.62 million, announced Monday it has secured a $15 million strategic investment from Theon International Plc (Euronext Amsterdam:THEON), a manufacturer of thermal imaging and night vision systems. According to InvestingPro data, Kopin holds more cash than debt on its balance sheet, positioning it well for this strategic move.

The investment includes $8 million directed to Kopin’s subsidiary in Scotland, where Theon will receive a 49% equity stake in Kopin Europe. The remaining $7 million will come through preferred shares convertible to common stock at a fixed price of $3.00 per share - significantly above the current trading price of $1.87. The stock has shown remarkable momentum, delivering a 125% return over the past year despite its volatile nature.

The agreement aims to expand Kopin’s access to European and NATO defense markets while establishing joint development and production activities at Kopin’s Virginia facility. The transaction is expected to close in Kopin’s fiscal third quarter, subject to regulatory approvals.

"Theon’s extended A.R.M.E.D. product line of Augmented Reality solutions for the dismounted solder will be a vehicle for co-developments between the two companies," said Christian Hadjininas, Theon’s CEO.

Michael Murray, Kopin’s Chairman and CEO, noted the investment comes "at a pivotal time as global defense spending continues to rise."

Kopin develops microdisplays and optical solutions for defense, enterprise, and consumer products, achieving 28.16% revenue growth in the last twelve months. Want deeper insights? InvestingPro offers exclusive analysis and 8 additional ProTips for KOPN, along with comprehensive financial metrics and expert research reports. Theon International, listed on Euronext Amsterdam, manufactures night vision and thermal imaging systems with operations across multiple countries and systems deployed with armed forces in 71 countries.

The partnership focuses on creating co-developed products for Europe, Southeast Asia, and NATO countries, according to the press release statement. Stifel is serving as financial advisor and placement agent to Kopin for this transaction.

In other recent news, Kopin Corporation announced a contract update with Lockheed Martin for the second phase of development on the Next-Generation Short-Range Interceptor Visual Display Subsystem. This update includes funding for a new high-resolution visual display assembly, integrating Kopin’s OLED microdisplays and other components into the U.S. Army’s system. Additionally, Kopin delivered the first production of its CR3 wearable surgical monitor to Carl Zeiss Meditec, enhancing surgical applications with full HD 3D imagery. The company is also set to showcase its microdisplays and spatial light modulators at the Laser World of Photonics exhibition in Munich. Kopin has advanced its NeuralDisplay technology, achieving significant milestones in hardware and software for AR/VR applications. In leadership news, Kopin’s long-serving CFO, Rich Sneider, has retired, prompting the company to search for a successor. Michael Murray, Chairman and CEO, acknowledged Sneider’s pivotal role in the company’s evolution over his 25-year tenure.

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