20 Dec 2016

Rakon's $US10m investment to help reduce debt

9:38 pm on 20 December 2016

Troubled crystal manufacturer Rakon says a $US10 million investment by a listed Taiwanese crystal manufacturer is a potential game-changer for both companies.

Rakon CEO Brent Robinson

Brent Robinson Photo: RAKON

Rakon said Siward Crystal Technology would buy 38 million new shares at 37 cents each, giving it a near 17 percent stake in Rakon.

The price was more than twice Rakon's last traded price of just 17.2 cents a share.

Rakon managing director Brent Robinson said the investment would help the company reduce its debt and develop a strategic partnership with a well-established and successful crystal manufacturer.

"This partnership will give both companies a broader range of products and alternative channels into new and existing markets," he said, adding that the companies also have an agreement to collaborate on technology.

Siward will also get a seat on Rakon's board, while the company continues its search for another New Zealand-based director.

The deal was expected to be settled 15 February.