Waterjet system builder plans to introduce new brand/product line soon
OMAX Corp. has issued a statement on the settlement of its outstanding patent litigation with Flow Corp., as well as on the cancelled merger between the two companies.
Kent, WA-based OMAX manufactures precision abrasive waterjet systems. The planned merger of OMAX and Flow was cancelled in May 2009.
“Due to the risks and difficulties of obtaining financing inherent in today’s capital markets, Flow elected to abandon the proposed merger between our companies,” stated OMAX CEO Dr. John Cheung. “While we still believe the merger could have provided significant benefits for both companies, OMAX was unwilling to further modify the terms of the merger agreement. OMAX is emerging from this process with a very strong financial position.”
As a result of Flow’s termination of the merger and the patent settlement, OMAX reports it will receive $25 million in cash and $10 million in notes maturing in four years. A cross-licensing agreement has been reached for the patents involved in the litigation.
Cheung stated no commercialized technology was exchanged between OMAX and Flow.
Also, OMAX announced it is establishing a new division and brand name — MAXIEM. Technical details are forthcoming, the company said, and MAXIEM machines will debut this summer.
“Having penetrated markets in over 40 countries, we have identified a significant global need for a basic line of waterjet machines,” Dr. John Olsen, OMAX co-founder and V.P. of Operations stated. “Through extensive RD, we developed the MAXIEM line of machines to provide proven technologies in a highly productive, cost-efficient package.”