Arrowhead Increases Stake in Majority-Owned Subsidiary Unidym, Inc., a Leader in Carbon Nanotube Technology
PASADENA, Calif. – April 6, 2009 – Arrowhead Research Corporation (Nasdaq: ARWR) announced that the Company has agreed to increase its ownership in its majority-owned subsidiary Unidym, Inc. through a stock exchange (“the Agreement”) with certain holders of Unidym’s Series A Preferred Stock. Each share of Unidym Series A Preferred Stock is convertible into 1.68 shares of Unidym common stock. Unidym is a market leader in high value carbon nanotube (CNT) production and applications, with a near-term focus on displays.
Under the Agreement, Arrowhead is exchanging an aggregate of 1,564,610 restricted shares of Arrowhead common stock for an aggregate of 1,564,610 shares of Unidym Series A Preferred Stock with the holders. The Agreement provides for a one-year lock up on sales of the exchanged Arrowhead stock. As a result of the Agreement, Arrowhead’s ownership in Unidym will increase to 58.1% from 51.5%.
"We see Unidym as an important value generator for Arrowhead going forward, and this transaction enables us to increase our upside potential without expending cash," stated Dr. Christopher Anzalone, Arrowhead’s President and CEO. "We were pleased with Unidym's progress last year in commercial sales of its high-end, proprietary CNT materials and its establishment of strategic partnerships and joint development agreements with major LCD and touch panel manufacturers. Unidym's technology has the potential to be a disruptive force in the electronics industry, with near-term opportunities in the substantial touch-screen and LCD markets, and longer term, via additional applications in such diverse industries as solar energy and printable electronics. We look forward to increased participation in Unidym's future success."
About Arrowhead Research Corporation
Arrowhead Research Corporation (www.arrowheadresearch.com) (NASDAQ:ARWR) is a nanotechnology company commercializing new technologies in the areas of life sciences, electronics, and energy. Arrowhead is seeking to build value for shareholders through the progress of majority owned subsidiaries. Currently, Arrowhead has four subsidiaries commercializing nanotech products and applications and minority investments in two privately held nanobiotech companies.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This news release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties. For example, there can be no assurance that we will be able to maintain our listing on any NASDAQ market, that our financial initiatives will succeed in strengthening our balance sheet or that we will be able to continue to operate as a going concern. Arrowhead Research Corporation's Annual Report on Form 10-K and 10-K/A, recent and forthcoming Quarterly Reports on Form 10-Q and 10-Q/A, recent Current Reports on Forms 8-K and 8-K/A, our Registration Statements on Form S-3, and other SEC filings discuss these and other important risk factors that may affect our business, results of operations and financial condition. We disclaim any intent to revise or update publicly any forward-looking statements.