RFM Announces Investment by Murata
RF Monolithics Inc. (RFM) announced that Murata Electronics North America Inc. has purchased 533,000 shares of RFM Common Stock at $1.31/share, representing a small premium over RFM’s recent 30 day volume weighted average price, in a private transaction. The purchase represents less than five percent of RFM’s outstanding stock.
Additionally, RFM and Murata Manufacturing Co. Ltd., Murata Electronics North America’s parent, have entered into a collaboration agreement.
David Kirk, President and CEO of RFM, commented, “The collaboration agreement will facilitate our companies’ exploring how we can cooperate to provide additional products and services to our customers and how each other’s resources can be deployed to assist this effort. We initially will put an emphasis on the wireless solutions portion of both company’s product portfolios, but we will not be limited to just that area. We are excited about collaborating with such a fine company as Murata and feel both companies will benefit.”
John Denslinger, Senior Vice President of Murata Wireless Solutions, commented, “The collaboration agreement opens up such a wide variety of opportunities for both companies in the M2M marketplace. Combined, we have the broadest range of wireless solutions offerings, covering all market segments from the communications market to the industrial and medical markets. We even see opportunities in our fundamental component business that could benefit us both over the next several years.”
Buddy Barnes, CFO of RFM, commented, “The investment by Murata Electronics North America Inc., basically at market price, shows the value of the improved performance of RFM over the last 12-15 months and meets our bank requirement for new equity. According to the terms of our bank agreement, this will also increase our availability under this collateralized facility by up to $750,000.”
“In the short term, we will use the proceeds of this equity investment to pay down our bank line. Over the long term, we will use this new investment and the funds that we have available under our bank line to fund our program for growth. We intend to continue to develop new products and support an aggressive sales and marketing effort to promote them. We believe the M2M marketplace offers us a very large and attractive opportunity to grow our business and we are determined to do that,” further stated Barnes.