GCT Semiconductor Becomes a Publicly Traded Company After Completing Business Combination with Concord Acquisition Corp III, Will Commence Trading on NYSE Under Ticker Symbol "GCTS"
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Transaction values GCT at a pro forma enterprise value of approximately
$461 million at closing -
Pro forma valuation of GCT of up to approximately
$667 million , which includes up to 20.6 million performance-based earnout shares -
Transaction provided GCT approximately
$50 million of gross proceeds to finalize development of a full-band 5G chipset portfolio as well as for expansion into new markets -
Approximately
$49 million has been funded via fully committed PIPE and convertible note financing from both existing and new investors of GCT - All GCT existing stockholders retained their equity holdings through GCT’s transition into the publicly listed company and substantially all outstanding convertible notes will convert into common stock at closing
“Today is a momentous day for our company, our employees and our stockholders, as we begin our journey as a publicly-traded company,” said
“I would like to thank the entire teams at GCT and Concord for their support and cooperation in making this significant milestone possible,” said Dr.
“We are thrilled to close our business combination with GCT. The prospects for GCT’s technology coupled with the roster of long-standing customers are exceptional,” said
Advisors
About
About
Prior to the closing of the business combination,
Concord raised
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1955. These forward-looking statements include, without limitation, GCT’s expectations with respect to the business combination between Concord and GCT, including statements regarding the anticipated benefits of the transaction, the enterprise valuation of GCT, market opportunities for GCT’s products and technology, GCT’s projected future results and anticipated industry trends, including the 4G and 5G markets. Words such as “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside GCT’s control and are difficult to predict. Factors that may cause actual future events to differ materially from the expected results, include, but are not limited to: the effect of the transaction on GCT’s business relationships, performance, and business generally; the inability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition and the ability of the post-combination company to grow and manage growth profitability and retain its key employees; costs related to the business combination; the outcome of any legal proceedings that may be instituted against GCT or Concord following the announcement of the proposed business combination, the inability to maintain the listing of the combined company on NYSE; the ability to implement business plans, forecasts, and other expectations, including the growth of 5G market; the risk of economic downturns that affects GCT’s business operation and financial performance; the risk that GCT may not be able to develop and design its products acceptable to its customers; actual or potential conflicts of interest of the Company’s management with its public stockholders; and other risks and uncertainties indicated from time to time in the registration statement on Form S-4, including the proxy statement/prospectus contained therein, filed by Concord relating to the business combination, including those under the “Risk Factors” section therein. The foregoing list of factors is not exhaustive. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and GCT assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
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