Egide raises €2.6m, pulls sale of US business
Struggling French chip packaging firm Egide has raised €2.6m through a preemptive share offering and a bond issue so that it doesn’t have to sell its US operations.
Egide focusses on semiconductor packaging for telecoms chips in space systems, with High Temp Cofired Ceramic, thermal management materials, plating services, precision machining, package assembly, specialized sealing/brazing/soldering processes supporting Glass-To-Metal-Seal and Ceramic-to-Metal-Seal, and testing and inspection.
The funding comes from €1.9m from Compagnie Nationale de Navigation, an entity affiliated with Patrick Molis, described as an entrepreneur in the maritime transport, logistics, energy, aeronautics and defence industries, as well as bonds of €750,000 that mature in December 2023.
The funding will be used to begin work on turning around its US subsidiaries, Egide US and Santier, with a new management team, recruit a sales team to boost sales and to finance the increase in its working capital requirement due to higher revenue. The relationship with Compagnie Nationale de Navigation and Molis will also give more access to the defence industry.
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“I am delighted by the launch of these two financial transactions, which will provide Egide Group with resources needed to pursue its plan for a return to profitability and to turn its US subsidiaries around,” said Philippe Bringuier, CEO of Egide.
“They will also strengthen its shareholder structure with the Compagnie Nationale de Navigation becoming a shareholder of Egide and the arrival on its Board of Directors of Compagnie Nationale de Navigation’s chairman Patrick Molis, an entrepreneur in the maritime transport, logistics, energy, aeronautics and defence industries,” he said.
“The Egide Group is opening a new chapter in its history: following the change in governance, it is refocusing on the high-growth defence and aerospace markets, which provide higher added value than the telecoms industry in which the Group has traditionally operated, and putting in place a plan for a return to profitability.”
The company saw sales up 13% to €8.6m in the first half of 2023 and the cpmany expects similar turnover in the second half.
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