SemiLEDs Corporation develops, manufactures, and sells light emitting diode (LED) chips and LED components. Its products are used primarily for general lighting applications, including street lights, as well as commercial, industrial, and residential lighting; and specialty industrial applications, such as ultraviolet (UV) applications, curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, LED lighting for horticulture applications, and architectural and entertainment lighting applications. The company sells blue, green, and UV LED and enhanced vertical LED chips to packagers or distributors primarily in China, Taiwan, and the United States. It also packages and sells its LED chips into LED components to distributors and end-customers. SemiLEDs Corporation was incorporated in 2005 and is headquartered in Chunan, Taiwan.
Big mover after the past three sessions. On July 6, 2016, SemiLEDs Corporation (the “Company”) entered into a definitive purchase agreement effective July 6, 2016 (the “Agreement”) with Dr. Peter Chiou. Pursuant to the terms of the Agreement, Dr. Peter Chiou will purchase 577,000 shares of the Company’s common stock at $5.00 per share. This represents approximately 19.6% of the outstanding shares of the Company. Dr. Chiou also intends to subscribe to a $1,615,000 SemiLEDs Corporation’s 0% interest convertible note (the “Note”) with a September 29, 2017 maturity date. Subject to shareholder approval at the Company’s next shareholders meeting, the Note will be convertible into a number of shares of the Company’s common stock equal to the quotient obtained by dividing (x) $1,615,000 by (y) the conversion price, which is equal to the lesser of $3.40 or the 5-trading day volume weighted average price of the common stock on the NASDAQ Stock Market ending on the maturity date.
SemiLEDs (LEDS) exploded last week after a major investor increased his stake to 20%. LEDS should be watched for more upside in the coming weeks.
