Under the new arrangement, Lumificient founder and CEO Zdenko Grajcar will serve as Nexxus Lighting's chief technology officer and will oversee the expanded R&D team. In addition, Carey Burkett will continue in his role as president of Lumificient.
The stock purchase agreement underpinning the new deal entails Lumificient shareholders receiving a cash consideration of $1.1 million, 475,000 shares of Nexxus Lighting's Common Stock and - based on certain future 'earn-out formulations' - the possibility of additional shares. Lumificient Corporation registered total revenue of approximately $2.2 million in 2007, with around $933,000 earned during the first quarter of this year.
"The acquisition of Lumificient Corporation is very exciting," said Nexxus Lighting's president/CEO, Mike Bauer. "In addition to Lumificient's current growth rate for its existing solid-state LED lighting products, which serve the sign lighting and commercial lighting markets, the team at Lumificient brings expanded research and development capabilities to Nexxus and a platform of new technology that we feel will provide significant opportunities for growth in the general illumination 'white light' market. We believe that the strength of Lumificient's intellectual property combined with the potential to build on our IP with expanded R&D capabilities positions Nexxus Lighting to bring more new products to market faster."
Grajcar commented: "This moment is very special for all of us at Lumificient. By combining the strengths of both companies, we are creating a dynamic team of highly dedicated professionals. Our new team is committed to the technology and products that save energy and provide exceptional performance and value to our customers. Our goal will be [nothing less] than revolutionising lighting by delivering extraordinary LED solutions to the lighting market. As part of the Nexxus Lighting family, today is the day it starts for us."
Attempts to contact Nexxus Lighting for further comment regarding the long-term implications of the new arrangement had been unsuccessful at the time II went to virtual press.