EMCORE Announces Sale Of Chips Business And Wafer Fabrication Operations For $2.92M And Certain Assumed Liabilities
Portfolio Pulse from Benzinga Newsdesk
EMCORE Corporation (NASDAQ:EMKR) has sold its Chips business and indium phosphide wafer fabrication operations to HieFo Corporation for $2.92 million, including the assumption of certain liabilities. The sale, effective April 30, 2024, includes assets like equipment, contracts, IP, and inventory. HieFo, led by former EMCORE VP Dr. Genzao Zhang, will continue operations at EMCORE's Alhambra site, focusing on telecom, datacom, and AI connectivity industries.
May 02, 2024 | 8:40 pm
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EMCORE Corporation has successfully divested its non-core Chips business and wafer fabrication operations to HieFo Corporation for $2.92 million, a move that includes the transfer of significant assets and liabilities.
The sale of non-core assets is generally viewed positively by the market as it allows the company to focus on its core competencies and improve its financial position by generating cash. The immediate cash inflow and positive financial outcome from this transaction are likely to be viewed favorably by investors, potentially leading to a short-term positive impact on EMKR's stock price.
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