The release of the $2.7 million from escrow was triggered by the Company's filing of an amendment to its charter on April 20th to increase the number of shares of the Company's authorized common stock. The Company's shareholders approved this amendment at the 2006 Annual Meeting of Shareholders, which was held in Portland, Oregon, on April 18th. Over 90% of the votes cast on this proposal were voted in favor of the amendment.
Also at the annual meeting, the shareholders re-elected Brad Ketch, Ray Willenberg, Jr., Tom Cooper and Jack Peckham to its Board of Directors, approved three other amendments to the Company's articles of incorporation, and ratified the Board's appointment of Marcum & Kliegman LLP as the Company's independent registered public accounting firm for the current fiscal year. Each director nominee received over 98% of the votes cast in the election of directors and each other proposal received at least 94% of the votes cast on the proposal.
After paying offering costs, the Company's total net proceeds from this financing were approximately $5.3 million, $810,000 of which was used to repay the Company's obligations under loans made in December 2005 and January 2006. The remaining proceeds will be used to increase the Company's engineering and marketing staffs, increase investment in research and development, pay expenses necessary to have a high-volume, low-cost ASSP semiconductor fabricated at a chip foundry, and for general corporate purposes.
Rim Semi's flagship product, the Embarq(TM) E30 digital signal processor, is a dual-function chip that combines both the long-reach and high data rate of DSL plus the cost reduction of VoIP into one unique and powerful package.
About Rim Semiconductor Company
Based in Portland, Oregon, Rim Semiconductor is an emerging fabless communications semiconductor company. It has made available an advanced technology that allows data to be transmitted at greater speed and across extended distances over existing copper wire. For more information, visit www.rimsemi.com.
With the exception of historical information contained in this press release, this press release may include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, the following: product development difficulties; market demand and acceptance of products; the impact of changing economic conditions; business conditions in the Internet and telecommunications industries; reliance on third parties, including potential suppliers, licensors, and licensees; the impact of competitors and their products; risks concerning future technology; and other factors detailed in this press release and in the company's Securities and Exchange Commission filings. Rim Semiconductor is under no obligation to revise or update any forward looking statement in order to reflect events or circumstances that may arise in the future.
Contact:
Rim Semiconductor Company, Portland Brad Ketch, 503-257-6700 Email Contact