SemiLeds Corporation (LEDS)

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On August 17, 2019, SemiLEDs Corporation (the “Company”) received an offer dated August 17, 2019 from Xian Chang Ma, an individual investor resident in China, to purchase 680,000 shares of the Company’s common stock at $3.00 per share. This would represent approximately 19% of the currently outstanding shares of the Company, or 16% after the closing. The sale of the shares is subject to the Board accepting the offer and the negotiation and execution of a definitive stock purchase agreement. Upon the closing of the sale, the Board of Directors expects to nominate Mr. Ma to the Company’s Board of Directors. Mr. Ma is the Chairman and CEO of Shandong Tengjunxiang Biotechnology Co., Ltd. The offer also contemplates that the Company would change the Chinese name of its principal subsidiary from SemiLEDs Optoelectronics Co., Ltd. to SemiLEDs Tengjun Technology Co., Ltd.

The Company’s Board will decide whether to pursue the offer on or before 5:00PM EST August 30th, 2019. There is no assurance that the Board of Directors will approve the investment, if at all. Even if the offer is accepted, the Company might not be able to negotiate and enter into a definitive stock purchase agreement on acceptable terms or that any sale will be completed. The Company has previously announced similar investments that were not completed. Therefore, you should not rely on the possibility that the investment will be completed, if at all, when deciding whether to purchase or sell the Company’s common stock.