Theon’s investment comprises a $7 million purchase of preferred stock of Kopin convertible into common stock at a conversion price of $3 at Theon’s option and $8 million capital increase for the acquisition of a 49% stake in Kopin’s Scottish subsidiary, which will serve as the foundation for a new European joint venture acting as the global (non-US) conduit for the production and distribution of AR-enabled systems co-developed between Kopin and Theon and MicroLED display production. The whole investment in Kopin is geared toward the co-development of products and reflects the belief by Theon that the already extensive R&D investments that Kopin has undertaken have established the necessary foundation for a cooperation that can promptly translate into cost-efficient, AR-enabled products. Last week, the parties entered into definitive agreements, and the transaction is expected to close subject to necessary regulatory clearance.

Theon’s press release can be found via PDF at investors.theon.com. Kopin’s press release can be found at kopin.com.

The Reed Smith team in the U.S. was led by chair of the firm’s global M&A team, Jennifer W. Cheng, and partner Sue Nieto, with invaluable support from partner Michael S. Lee and counsel Frank Wei. The Reed Smith team in the UK was led by partner Daryl Cue, with invaluable support from associate Ciaran Sweeney.