Shandong-based microelectronic component manufacturer GoerTek (002241.SZ) has announced plans to purchase a 9.8% stake in U.S.-based wearable technology company Kopin Corporation (Nasdaq: KOPN).
GoerTek will purchase 7.339 mln regular shares of Kopin using USD 23.85 of its own cash reserves. The agreement calls for a price of USD 3.25 per share, representing a premium of approximately 14.4% above the closing price for Kopin shares on December 30.
Kopin Corporation is a developer of integrated head-mounted computers and display systems, and provides related solutions for military, industrial, and consumer markets. GoerTek hopes to combine its design and manufacturer capabilities with Kopin's cutting edge technology in the fields of microdisplays, voice chips, optics, OLED displays, batteries, VR, and components to ultimately develop and sell a series of virtual reality and augmented reality products, as well as other smart wearable tech.