GT Advanced Technologies Inc (OTCMKTS:GTATQ) surged more than 50% after reaching a settlement agreement with Apple Inc. (NASDAQ:AAPL) today.
The shares of GT Advanced Technologies Inc (OTCMKTS:GTATQ) were trading $0.80 per share at the time of this writing around 2:20 in the afternoon in New York.
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Yesterday, the Luc Despins, the lawyer representing GT Advanced Technologies Inc (OTCMKTS:GTATQ) was optimistic that the company would soon resolve a dispute over confidentiality with Apple Inc. (NASDAQ:AAPL).
Details of the settlement agreement
Under the settlement agreement, GT Advanced Technologies Inc (OTCMKTS:GTATQ) will wind downs its sapphire materials production in Massachusetts. The company indicated its intention to exit completely from sapphire materials production.
GT Advanced Technologies Inc (OTCMKTS:GTATQ) retain ownership of all production, ancillary and inventory assets in Mesa, Arizona. It will repay the $439 million pre-payment provided by Apple Inc. (NASDAQ:AAPL) for four years without interest.
GT Advanced Technologies Inc (OTCMKTS:GTATQ) retains control of its intellectual property rights, and it can sell its sapphire growth and fabrication technology without restriction. It was also released from all exclusivity obligations under its agreements with Apple Inc. (NASDAQ:AAPL).
GT Advanced continues technical exchange with Apple
According to GT Advanced Technologies Inc (OTCMKTS:GTATQ), it will continue its technical exchange with Apple Inc. (NASDAQ:AAPL) related to the development of processes for growing next generation sapphire boule.
The company plans to refocus itself as an equipment supplier, manufacturing and developing sapphire growth systems and processes.
GT Advanced technologies CEO Tom Gutierrez said, “We are pleased with the settlement that we have negotiated with Apple. This agreement with Apple is an important step in that direction as it will allow us to monetize our advanced sapphire growth and fabrication technologies in an unrestricted manner.”
“We realize that our filing for Chapter 11 protection has caused uncertainty and hardship for many of our important stakeholders,” added Gutierrez.
According to him, they are working diligently to develop a restructuring plan to emerge from chapter 11 bankruptcy as soon as possible, and to position GT Advanced Technologies with operating flexibility and resources for long-term success.