Silicon Integrated Systems Corp.(SiS) and HYCON Technology Corporation held board meetings on Aug 6, 2024 respectively. The resolutions were to pass shares exchange in accordance with BUSINESS MERGERS AND ACQUISITIONS ACT and other related regulations, SiS to issue new shares as a currency in exchange for 100% HYCON shares.
Regarding the conversion rate, 1 share HYCON exchanges for 0.8713 share SiS common share; SiS will issue new 27,755,080 common shares to HYCON shareholders. After the completion of the share conversion, the total outstanding shares of SiS Technology will increase from the current 487,233,081 shares to 514,988,161 shares. HYCON will hold a special meeting of shareholders dated Oct 9, 2024 to discuss the matter; after approval by the meeting and the competent authority, HYCON will apply for a termination of trading at OTC and public offering in accordance with related regulations ;the share conversion record date will be provisional Jan 1, 2025.
Since Q3 last year management adjustment, SiS has actively promote transformation such as mergence with UDS and the recent 35% capital reduction and cash refund ; by increasing profits and book value per share, SiS enhanced shareholder value. Besides the existing customers and markets, SiS will incorporate battery management IC, mixed signal microcontroller, and capacitive touch IC from HYCON. In combination of product mixes and customers of both sides, SiS overall operational scale will be significantly improved.
Research and development is a core competence of a IC design house; SiS and HYCON will share Research and development resources; combining SiS proficiency in use of body and voice sensing technology with HYCON low noise high precision digital/ analog conversion technology, this will further improve chip performance from both sides, also provide a more completed solution, and bring in customers and expand markets. An IC design house highly depends on wafer fabrication and packaging/testing service; through SiS long-term and close alliance with foundry manufacturer(s), HYCON will have supports from process development and gain more production capacity; through HYCON unique quality controls and process flows on packaging/testing service, both sides will jointly become a better team so as to offer customers better Turnkey solutions and services.
Looking to the future, SiS and HYCON after share conversion will offer existing products and services and will actively develop new products; through synergy from integrating resources, expanding operation scale, managing costs, SiS and HYCON will strengthen competitiveness in global markets so as to create greater benefits to shareholders.