GT Advanced Technologies Inc fka GTAT

[lecorb]

Top 10 News for 10/20 - 10/24: Apple Ramps on Results; Loeb Eyes Amgen; Advanced Technologies Exits Sapphire Game
October 24, 2014 3:52 PM EDT


7. GT Advanced Technologies Inc. (OTCBB: GTATQ) (Nasdaq: GTAT) and Apple announced reaching a settlement agreement under which GT will wind down its sapphire materials production in the company's Mesa, AZ and Salem, MA locations. The company indicated that it will exit from the market as a producer of sapphire materials and will refocus its business as an equipment supplier, manufacturing and developing sapphire growth systems and processes. Under the terms of the settlement agreement, which is subject to approval by the Bankruptcy Court, GT will be released from all exclusivity obligations under its various agreements with Apple. GT will retain ownership of all production, ancillary and inventory assets located in Mesa and Apple is provided with a mechanism for recovering its $439 million pre-payment made to GT over a period of up to four years without interest, solely from a portion of the proceeds from ASF® sales. The agreement provides for a mutual release of any and all claims by both parties. As a result of the agreed upon terms, GT retains control of its intellectual property and will be able to sell its sapphire growth and fabrication technology, including ASF and Hyperion™, without restrictions.

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