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As filed with the Securities and Exchange Commission on December 17, 2007
Registration No. 333-
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
SUPERCONDUCTOR TECHNOLOGIES INC.
(Exact name of Registrant as specified in its charter)
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Delaware
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77-0158076 |
(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification Number) |
460 Ward Drive
Santa Barbara, CA 93111-2310
(805) 690-4500
(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant’s Principal Executive Offices)
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Jeffrey A. Quiram President and Chief Executive Officer
Superconductor Technologies Inc.
460 Ward Drive
Santa Barbara, CA 93111-2310
(805) 690-4500
(Name and address of agent for service)
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Copies of communications sent to: Theodore E. Guth
Manatt, Phelps & Philips LLP
11355 West Olympic Boulevard
Los Angeles, CA 90064
(310) 312-4131 |
Approximate date of commencement of proposed sale to the public: From time to time
after the effective date of this Registration Statement as determined by market conditions.
If the only securities being registered on this Form are being offered pursuant to dividend or
interest reinvestment plans, please check the following box. o
If any of the securities being registered on this Form are to be offered on a delayed or
continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities
offered only in connection with dividend or interest reinvestment plans, check the following
box. x
If this form is filed to register additional securities for an offering pursuant to Rule
462(b) under the Securities Act, please check the following box and list the Securities Act
registration statement number of the earlier effective registration statement of the same
offering. o
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the
Securities Act, check the following box and list the Securities Act registration statement number
of the earlier effective registration statement for the same offering. o
If this Form is a registration statement pursuant to General Instruction I.D. or a
post-effective amendment thereto that shall become effective upon filing with the Commission
pursuant to Rule 462(e) under the Securities Act, check the following box. o
If this Form is, a post-effective amendment to a registration statement filed pursuant to
General Instruction I.D. filed to register additional securities or additional classes of
securities pursuant to Rule 413(b) under the Securities Act, check the following box. o
CALCULATION OF REGISTRATION FEE
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Proposed Maximum |
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Proposed Maximum |
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Amount |
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Offering Price |
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Aggregate |
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Amount of |
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Title of Securities to be Registered |
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to be Registered |
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Per Share |
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Offering Price |
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Registration Fee |
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Common Stock, par value $.001 per share |
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— |
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— |
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— |
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— |
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Preferred Stock, par value $.001 per share |
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— |
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— |
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— |
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— |
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Warrants |
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— |
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— |
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— |
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Total |
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— |
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— |
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$ |
80,000,000 |
(1)(2)(3)(4) |
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2,456 |
(5) |
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(1) |
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The table does not specify information as to the amount of any particular security to be
registered in reliance on Rule 457(o) under the Securities Act of 1933, which permits the
registration fee to be calculated on the basis of the aggregate maximum offering price of all
securities listed. |
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(2) |
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We are registering an indeterminate number of shares of common stock and preferred stock and
an indeterminate amount of warrants, each of which may be offered from time to time at prices
to be determined at the time of any such offering. The aggregate offering price of these
securities will not exceed $80,000,000. Any securities registered hereunder may be sold
separately from, or together in the same offering with, other securities registered hereunder.
The securities registered also include such indeterminate amounts and numbers of shares of
common stock and preferred stock that may be issued upon the exercise of warrants registered
hereunder or, in the case of the common stock, upon the conversion of or in exchange for, or
pursuant to the antidilution provisions of, shares of preferred stock registered hereunder. |
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The proposed maximum aggregate offering price per class of security and per unit or share
will be determined from time to time by the Registrant in connection with the issuance by the
Registrant of the securities registered hereunder and is not specified as to each class of
security pursuant to General Instruction II.D of Form S-3 under the Securities Act of 1933. |
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The aggregate amount of common stock registered hereunder is limited, solely for purpose of
any at-the-market offering, to that which is permissible under Rule 415(a)(4) of the
Securities Act of 1933. |
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(5) |
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Computed in accordance with Rule 457(o). |
The Registrant hereby amends this Registration Statement on such date or dates as may be
necessary to delay its effective date until the Registrant shall file a further amendment which
specifically states that this Registration Statement shall thereafter become effective in
accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement
shall become effective on such date as the Securities and Exchange Commission, acting pursuant to
said Section 8(a), may determine.
The information in this prospectus is not complete and may be changed. The issuer may not sell
these securities until the registration statement filed with the Securities and Exchange Commission
is effective. This prospectus is not an offer to sell these securities and it is not soliciting an
offer to buy these securities in any state where the offer or sale is not permitted.
SUBJECT TO COMPLETION, DATED DECEMBER 17, 2007
PROSPECTUS
$80,000,000
We may offer, from time to time, together or separately, up to $80,000,000 aggregate
amount, of:
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common stock |
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preferred stock |
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warrants |
We may offer the securities in one or more series, in amounts, at prices and on terms
determined at the time of offering. We will provide the specific terms of any securities we
actually offer for sale in supplements to this prospectus.
You should read carefully this prospectus, each supplement and the documents incorporated by
reference into this prospectus before you invest in any of our securities. This prospectus may not
be used to sell securities unless accompanied by a prospectus supplement.
Our common stock is traded on the Nasdaq Stock Market under the symbol “SCON.” On December
13, 2007, the closing sale price of our common stock on the Nasdaq Stock Market was $8.95 per
share. Our principal executive offices are located at 460 Ward Drive, Santa Barbara, California
93111-2310, and our telephone number is (805) 690-4500.
We will sell these securities directly, through agents, dealers or underwriters as designated
from time to time, or through a combination of these methods. We reserve the sole right to accept,
and together with our agents, from time to time, to reject in whole or in part any proposed
purchase of securities to be made directly or through agents. If our agents or any dealers or
underwriters are involved in the sale of securities, the applicable prospectus supplement will set
forth the names of the agents, dealers or underwriters and any applicable commissions or discounts.
You should carefully consider the risk factors included in the documents incorporated by
reference in this prospectus before making a decision to purchase our securities.
Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of the securities described in this prospectus or passed upon the adequacy
or accuracy of this prospectus. Any representation to the contrary is a criminal offense.
The date of this prospectus is , 2007.
TABLE OF CONTENTS
ABOUT THIS PROSPECTUS
This prospectus is part of a registration statement we filed with the Securities and Exchange
Commission, or SEC, using a “shelf” registration process. Under the shelf registration process,
using this prospectus, together with a prospectus supplement, we may sell, from time to time, in
one or more offerings, any combination of the securities described in this prospectus in a dollar
amount that does not exceed $80,000,000 in the aggregate. This prospectus provides you with a
general description of the securities we may offer. Each time we offer securities, a prospectus
supplement will be provided that will contain specific information about the terms of that
offering. The prospectus supplement may also add, update or change information contained in this
prospectus.
You should read this prospectus, the applicable prospectus supplement and the information
incorporated by reference in this prospectus before making an investment in our securities. See
“Where You Can Find More Information” for more information. You should rely only on the
information contained in or incorporated by reference in this prospectus or a prospectus
supplement. We have not authorized anyone to provide you with different information. This
document may be used only in jurisdictions where offers and sales of these securities are
permitted. You should not assume that information contained in this prospectus, in any supplement
to this prospectus, or in any document incorporated by reference is accurate as of any date other
than the date on the front page of the document that contains the information, regardless of when
this prospectus is delivered or when any sale of our securities occurs.
DOCUMENTS INCORPORATED BY REFERENCE
The SEC allows us to “incorporate by reference” information that we file with them, which
means that we can disclose important information to you by referring you to those documents. The
information incorporated by reference is an important part of this prospectus, and the information
that we file later with the SEC will automatically update and supersede this information. The
following documents have been previously filed by us with the SEC pursuant to the Exchange Act and
are hereby incorporated by reference in this prospectus and the registration statement of which
this prospectus forms a part:
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our Annual Report on Form 10-K for the year ended December 31, 2006, as amended
by Amendment No. 1 on Form 10-K/A filed on April 24, 2007; |
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our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2007, June
30, 2007 and September 29, 2007; |
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our Current Reports on Form 8-K filed with the SEC on January 24, 2007, February
6, 2007, March 7, 2007, March 8, 2007, April 18, 2007, April 24, 2007, August 22,
2007 and November 15, 2007; and |
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the description of our common stock contained in our registration statement on
Form 8-A filed with the SEC on January 4, 1993. |
Certain Current Reports
on Form 8-K dated both prior to and after the date of this prospectus
are or will be furnished to the Securities and Exchange Commission and shall not be deemed “filed”
with the Securities and Exchange Commission and will not be incorporated by reference into this
prospectus. However, all other reports and documents filed by us after the date of this prospectus
under Sections 13(a), 14 and 15(d) of the Securities Exchange Act of 1934 prior to the termination
of the offering of the securities covered by this prospectus are also incorporated by reference in
this prospectus and are considered to be part of this prospectus from the date those documents are
filed. If you make a request for this information in writing or by telephone, we will provide you,
without charge, a copy of any or all of the information incorporated by reference in the
registration statement of which this prospectus forms a part. Requests for this information should
be submitted in writing to our Secretary, at our principal executive offices at Superconductor
Technologies Inc., 460 Ward Drive, Santa Barbara, California 93111-2310 or by telephone at (805)
690-4500.
This prospectus is part of a registration statement we have filed with the SEC. You should
rely only on the information incorporated by reference or provided in this prospectus, or any
supplement thereof. No one else is authorized to provide you with different information. You
should not rely on any other representations. We are not making an offer of these securities in
any state where the offer is not permitted. Our affairs may change after this prospectus or any
supplement is distributed. You should not assume that the information in or incorporated by
reference into this prospectus or any supplement is accurate as of any date other than the date on
the front of those documents. You should read all information supplementing or incorporated by
reference into this prospectus.
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly and special reports, proxy statements and other information with the
SEC. You may read and copy any document we file with the SEC at the SEC’s Public Reference Room at
100 F Street, N.E., Washington D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further
information on the operation of the Public Reference Room. The SEC also maintains a web site that
contains reports, proxy and information statements, and other information regarding registrants
that file electronically with the SEC at http://www.sec.gov. In addition, we maintain a web site
that contains information about us at http://www.suptech.com. The information contained on or
that may be obtained from our website is not, and shall not be deemed to be, a part of this
prospectus.
We have filed with the SEC a registration statement on Form S-3, of which this prospectus is a
part, including exhibits, schedules and amendments filed with, or incorporated by reference in,
this registration statement, under the Securities Act of 1933, as amended, or the Securities Act,
with respect to the shares of our common stock registered hereby. This prospectus does not contain
all of the information set forth in the registration statement and exhibits and schedules to the
registration statement. For further information with respect to our company and the shares of our
common stock registered hereby, reference is made to the registration statement, including the
exhibits to the registration statement. Statements contained in this prospectus as to the contents
of any contract or other document referred to in, or incorporated by reference in, this prospectus
are not necessarily complete and, where that contract is an exhibit to the registration statement,
each statement is qualified in all respects by the exhibit to which the reference relates. Copies
of the registration statement, including the exhibits and schedules to the registration statement,
may be examined at the SEC’s Public Reference Room at 100 F Street, N.E., Washington D.C. 20549.
Please call the SEC at 1-800-SEC-0330 for further information on the operation of the Public
Reference Room. Copies of all or a portion of the registration statement can be obtained from the
public reference room of the SEC upon payment of prescribed fees. This registration statement is
also available to you on the SEC’s web site, http://www.sec.gov.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus contains, and may incorporate by reference, forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. You can find many (but not all) of these statements
by looking for words such as “approximates,” “believes,” “expects,” “anticipates,” “estimates,”
“intends,” “plans” “would,” “may” or other similar expressions in this prospectus. We claim the
protection of the safe harbor contained in the Private Securities
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Litigation Reform Act of 1995. We caution investors that any forward-looking statements
presented or incorporated by reference in this prospectus, or which we may make orally or in
writing from time to time, are based on the beliefs of, assumptions made by, and information
currently available to, us. Such statements are based on assumptions and the actual outcome will
be affected by known and unknown risks, trends, uncertainties and factors that are beyond our
control or ability to predict. Although we believe that our assumptions are reasonable, they are
not guarantees of future performance and some will inevitably prove to be incorrect. As a result,
our actual future results can be expected to differ from our expectations, and those differences
may be material. Accordingly, investors should use caution in relying on past forward-looking
statements, which are based on known results and trends at the time they are made, to anticipate
future results or trends.
Some of the risks and uncertainties that may cause our actual results, performance or
achievements to differ materially from those expressed or implied by forward-looking statements
include the following: limited assets and a history of losses; limited number of potential
customers; limited number of suppliers for some of our components; no significant backlog from
quarter to quarter; our market is characterized by rapidly advancing technology. For further
discussion of these and other factors, see “Risk Factors” in the documents incorporated by
reference in this prospectus.
This prospectus and all subsequent written and oral forward-looking statements attributable to
us or any person acting on our behalf are expressly qualified in their entirety by the cautionary
statements contained or referred to in this section. We do not undertake any obligation to release
publicly any revisions or updates to our forward-looking statements to reflect events or
circumstances or changes to our assumptions that occur after the date of this prospectus.
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SUMMARY
Our Company
We develop, manufacture and market high performance infrastructure products for wireless voice
and data applications. Wireless carriers face many challenges in today’s competitive marketplace.
Minutes of use are skyrocketing, and wireless users now expect the same quality of service from
their mobile devices as from their landline phones. We help wireless carriers meet these
challenges by “doing more with less.”
Our products help maximize the performance of wireless telecommunications networks by
improving the quality of uplink signals from mobile wireless devices. Our products increase
capacity utilization, lower dropped and blocked calls, extend coverage, and enable higher wireless
data throughput — all while reducing capital and operating costs. SuperLink incorporates patented
high-temperature superconductor (HTS) technology to create a receiver front-end that enhances
network performance. Today, we are leveraging our expertise and proprietary technology in radio
frequency (RF) engineering to expand our product line beyond HTS technology. We believe our RF
engineering expertise provides us with a significant competitive advantage in the development of
high performance, cost-effective solutions for the front end of wireless telecommunications
networks.
We have three product offerings:
• SuperLink. In order to receive uplink signals from wireless handsets, base stations
require a wireless filter system to eliminate out-of-band interference. SuperLink combines HTS
filters with a proprietary cryogenic cooler and an ultra low-noise amplifier. The result is a
highly compact and reliable receiver front-end that can simultaneously deliver both high
selectivity (interference rejection) and high sensitivity (detection of low level signals).
SuperLink delivers significant performance advantages over conventional filter systems.
• AmpLink. AmpLink is designed to address the sensitivity requirements of wireless
base stations. AmpLink is a ground-mounted unit which utilizes a high-performance amplifier. The
enhanced uplink performance provided by AmpLink improves network coverage immediately and avoids
the installation and maintenance costs associated with tower mounted alternatives.
• SuperPlex. SuperPlex is our line of multiplexers that provides extremely low
insertion loss and excellent cross-band isolation. SuperPlex high-performance multiplexers are
designed to eliminate the need for additional base station antennas and reduce infrastructure
costs. Relative to competing technologies, these products offer increased transmit power delivered
to the base station antenna, higher sensitivity to subscriber handset signals, and fast and
cost-effective network overlays.
We currently sell most of our commercial products directly to wireless network operators in
the United States. Our customers to date include ALLTEL, AT&T, Sprint Nextel, T-Mobile, U.S.
Cellular and Verizon Wireless. We have a concentrated customer base. We plan to expand our
customer base by selling directly to other wireless network operators and manufacturers of base
station equipment, but we cannot assure that this effort will be successful.
We also generate significant revenues from government contracts. We primarily pursue
government research and development contracts which compliment our commercial product development.
We undertake government contract work which has the potential to improve our commercial product
offering. These contracts often yield valuable intellectual property relevant to our commercial
business. We typically own the intellectual property developed under these contracts, and the
Federal Government receives a royalty-free, non-exclusive and nontransferable license to use the
intellectual property for the United States.
We sell most of our products to a small number of wireless carriers, and their demand for
wireless communications equipment fluctuates dramatically and unpredictably. We expect these
trends to continue and may cause significant fluctuations in our quarterly and annual revenues.
The wireless communications infrastructure equipment market is extremely competitive and is
characterized by rapid technological change, new product development, product obsolescence,
evolving industry
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standards and price erosion over the life of a product. We face constant pressures to reduce
prices. Consequently, we expect the average selling prices of our products will continue
decreasing over time. We have responded in the past by successfully reducing our product costs,
and expect further cost reductions over the next twelve months. However, we cannot predict whether
our costs will decline at a rate sufficient to keep pace with the competitive pricing pressures.
We were incorporated in the state of Delaware in 1987. Our principal place of business and
executive offices are located at 460 Ward Drive, Santa Barbara, California 93111. We have
undergone three unique phases of development since our incorporation in 1987. From 1987 to 1996,
we focused primarily on the research and development of HTS technologies. From 1997 to 2001, our
second phase, we made the transition from a research and development firm to a commercial operating
company. During this time we launched our first commercial HTS product, the SuperFilter System,
and concentrated on commercializing HTS technology for the U.S. wireless market. We are now in our
third phase of development. Our Company has evolved from one oriented solely around HTS technology
to one that is committed to providing best-in-class link enhancement solutions to the global
wireless infrastructure market. Following our strategy of Total Link Enhancement, (simultaneously
optimizing the performance of the uplink, the downlink and the antenna), we now offer innovative
technologies across multiple product lines and in multiple geographic markets.
The Securities We May Offer
With this prospectus, we may offer common stock, preferred stock and warrants, or any
combination of the foregoing. The aggregate initial offering price of all securities we sell in
the primary offerings under this prospectus will not exceed $80,000,000. Each time we offer
securities with this prospectus, we will provide offerees with a prospectus supplement that will
contain the specific terms of the securities being offered. The following is a summary of the
securities we may offer with this prospectus.
We may sell the securities to or through underwriters, dealers or agents or directly to
purchasers. We, as well as any agents acting on our behalf, reserve the sole right to accept and
to reject in whole or in part any proposed purchase of securities. Each prospectus supplement will
set forth the names of any underwriters, dealers or agents involved in the sale of securities
described in that prospectus supplement and any applicable fee, commission or discount arrangements
with them.
Common Stock
We may offer shares of our common stock, par value $0.001 per share, either alone or
underlying other registered securities convertible into or exchangeable for our common stock.
Holders of our common stock are entitled to such dividends as our board of directors may declare
from time to time out of legally available funds, subject to the preferential rights of the holders
of any shares of our preferred stock that are outstanding or that we may issue in the future.
Currently, we do not pay any dividends. Each holder of our common stock is entitled to one vote
per share. Holders of our common stock have no preemptive rights. In this prospectus, we provide
a general description of, among other things, our dividend policy and the transfer and voting
restrictions that apply to holders of our common stock.
Preferred Stock
We may issue shares of preferred stock in one or more classes or series. Our board of
directors or a committee designated by our board of directors will determine the dividend, voting
and conversion rights and other provisions at the time of sale. The particular terms of each class
or series of preferred stock, including redemption privileges, liquidation preferences, voting
rights, dividend rights and/or conversion rights, will be more fully described in the applicable
prospectus supplement relating to the preferred stock offered thereby.
Warrants
We may offer warrants for the purchase of shares of preferred or common stock. We may issue
the warrants by themselves or together with preferred stock or common stock and the warrants may be
attached to or
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separate from any offered securities. Each series of warrants will be issued under a separate
warrant agreement to be entered into between us and a warrant agent. Our board of directors or a
committee designated by our board of directors will determine the terms of the warrants at the time
of sale. This prospectus contains only general terms and provisions of the warrants. The
applicable prospectus supplement will describe the particular terms of the warrants being offered
thereby.
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USE OF PROCEEDS
Unless otherwise indicated in the applicable prospectus supplement, we anticipate that the net
proceeds from the sale of the securities under this prospectus will be used for general corporate
purposes. General corporate purposes may include repayment of debt, capital expenditures, and any
other purposes that we may specify in any prospectus supplement. In addition, we may use a portion
of any net proceeds to acquire complementary products, technologies or businesses. We will have
significant discretion in the use of any net proceeds. Investors will be relying on the judgment
of our management regarding the application of the proceeds of any sale of the securities. We may
invest the net proceeds temporarily until we use them for their stated purpose.
RATIO OF EARNINGS TO FIXED CHARGES
The Company will disclose or incorporate by reference in the related prospectus supplement a
ratio of earnings to fixed charges in connection with the registration of debt securities and a
ratio of combined fixed charges and preference dividends to earnings in connection with the
registration of preference equity securities.
We will disclose or incorporate by reference in the related prospectus supplement a ratio of
earnings to fixed charges in connection with our registration of debt securities and a ratio of
combined fixed charges and preference dividends to earnings in connection with our registration of
preference equity securities.
DESCRIPTION OF CAPITAL STOCK
The following description of our common stock and preferred stock, together with the
additional information we include in any applicable prospectus supplement, summarizes the material
terms and provisions of the common stock and the preferred stock that we may offer pursuant to this
prospectus. While the terms we have summarized below will apply generally to any future common
stock or preferred stock that we may offer, we will describe the particular terms of any class or
series of these securities in more detail in the applicable prospectus supplement. For the
complete terms of our common stock and preferred stock, please refer to our amended and restated
certificate of incorporation and our amended and restated bylaws that are incorporated by reference
into the registration statement of which this prospectus is a part or may be incorporated by
reference in this prospectus or any prospectus supplement. The terms of these securities may also
be affected by the General Corporation Law of the State of Delaware. The summary below and that
contained in any prospectus supplement is qualified in its entirety by reference to our amended and
restated certificate of incorporation and our amended and restated bylaws.
Authorized Capitalization
We have 252,000,000 shares of capital stock authorized under our certificate of incorporation,
consisting of 250,000,000 shares of common stock and 2,000,000 shares of preferred stock, of which
706,829 have been designated as Series A Convertible Preferred Stock. As of December 13, 2007, we
had 12,511,414 shares of common stock outstanding and no shares of preferred stock outstanding,
although we have entered into an agreement to issue an additional 2,148,296 shares of common stock
and 706,829 shares of Series A Preferred Stock subject to the payment of the purchase price by
December 31, 2007. The authorized shares of common stock and preferred stock are available for
issuance without further action by our stockholders, unless such action is required by applicable
law or the rules of any stock exchange or automated quotation system on which our securities may be
listed or traded. If the approval of our stockholders is not so required, our board of directors
may determine not to seek stockholder approval.
Common Stock
Holders of our common stock are entitled to such dividends as may be declared by our board of
directors out of funds legally available for such purpose, subject to any preferential dividend
rights of any then outstanding preferred stock. The shares of common stock are neither redeemable
or convertible. Holders of common stock have no preemptive or subscription rights to purchase any
of our securities.
Each holder of our common stock is entitled to one vote for each such share outstanding in the
holder’s
name. No holder of common stock is entitled to cumulate votes in voting for directors.
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In the event of our liquidation, dissolution or winding up, the holders of our common
stock are entitled to receive pro rata our assets which are legally available for distribution,
after payments of all debts and other liabilities and subject to the prior rights of any holders of
preferred stock then outstanding. All of the outstanding shares of our common stock are, and the
shares of common stock issued upon the conversion of any securities convertible into our common
stock will be, fully paid and non-assessable. The shares of common stock offered by this
prospectus or upon the conversion of any preferred stock or debt securities or exercise of any
warrants offered pursuant to this prospectus, when issued and paid for, will also be, fully paid
and non-assessable.
Our common stock is listed on the Nasdaq Stock Market under the symbol “SCON.” Registrar &
Transfer Company is the transfer agent and registrar for our common stock. Its address is 10
Commerce Drive, Cranford, NJ 07016, and its telephone number is (800) 866-1340.
Preferred Stock
Our certificate of incorporation permits us to issue up to 2,000,000 shares of preferred stock
in one or more series and with rights and preferences that may be fixed or designated by our board
of directors without any further action by our stockholders. As further described below, on
October 23, 2007, our board of directors authorized the designation and issuance of 706,829 shares
of Series A Convertible Preferred Stock. Although it has no present intention to do so, our board
of directors may issue additional preferred stock with terms that could adversely affect the voting
power of the holders of common stock. If we issue preferred stock, it may have the effect of
delaying, deferring or preventing a change of control.
Preferred stock could thus be issued quickly with terms calculated to delay or prevent a
change in control of STI or to make removal of management more difficult. Additionally, the
issuance of preferred stock may decrease the market price of our common stock. The number of
authorized shares of preferred stock may be increased or decreased, but not decreased below the
number of shares then outstanding, by the affirmative vote of the holders of a majority of the
common stock without a vote of the holders of preferred stock, or any series of preferred stock,
unless a vote of any such holder is required pursuant to the terms of such series of preferred
stock.
The following description sets forth certain general terms and provisions of the preferred
stock we may issue. If we offer convertible preferred stock, such stock will be convertible into
shares of our common stock. With respect to any convertible preferred stock or preferred stock
(each referred to herein as preferred stock) we may choose to offer, the specific designations and
rights will be described in the prospectus supplement relating to the preferred stock offered,
including the following terms. Each time that we issue a new series of preferred stock, we will
file with the SEC a definitive certificate of designations which will state the designation,
powers, preferences, rights and qualifications, limitations and restrictions of that series of
preferred stock. In addition, the prospectus supplement relating to that new series of preferred
stock will specify particular amount, price and other terms of that new series. These terms will
include:
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• |
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the designation of the series, which may be by distinguishing number, letter or
title; |
|
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• |
|
the number of shares of the series, which number the board of directors may
thereafter (except where otherwise provided in the preferred stock designation)
increase or decrease (but not below the number of shares thereof then outstanding); |
|
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• |
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the price at which the preferred stock will be issued; |
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• |
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the dividend rate, the dates on which the dividends will be payable, if any, whether
dividends shall be cumulative or noncumulative and other terms relating to the payment
of dividends on the preferred stock; |
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• |
|
the redemption rights and price or prices, if any, for shares of the series; |
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• |
|
whether the preferred stock is redeemable or subject to a sinking fund, and the
terms and amount of such sinking fund provided for the purchase or redemption of shares
of the series; |
8
|
• |
|
the amounts payable on shares of the series, and the special or relative rights of
such shares, in the event of any voluntary or involuntary liquidation, dissolution or
winding up of the affairs of our company; |
|
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• |
|
whether the shares of the series shall be convertible into shares of any other class
or series, or any other security, of our company or any other corporation, and, if so,
the specification of such other class or series or such other security, the conversion
price or prices or rate or rates, any adjustments thereof, the date or dates as of
which such shares shall be convertible and all other terms and conditions upon which
such conversion may be made; |
|
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• |
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any listing of the preferred stock on any securities exchange; |
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• |
|
the relative ranking and preferences of the preferred stock as to dividend rights
and rights upon liquidation and dissolution or winding up; |
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• |
|
restrictions on the issuance of shares of the same series or of any other class or
series; |
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• |
|
the voting rights, if any, of the holders of shares of the series, provided that no
share of preferred stock of any series will be entitled to more than one vote per share
of preferred stock; and |
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• |
|
any additional rights, preferences, qualifications, limitations and restrictions of
the preferred stock. |
Series A Convertible Preferred Stock
In October 2007 in connection with entering into an amended investment agreement with Hunchun
BaoLi Communication Co. Ltd., our board of directors authorized the designation and issuance of
706,829 shares of Series A Convertible Preferred Stock, or Series A Preferred, par value $0.001.
Subject to our receipt of the full purchase price in cash, expected in December 2007, we have
agreed to issue all of the authorized shares of Series A Preferred to Hunchun BaoLi Communication
Co. Ltd., or BAOLI. Subject to the terms and conditions of our Series A Preferred and to customary
adjustments to the conversion rate, each share of our Series A Preferred is convertible into ten
shares of our common stock so long as the number of shares of our common stock beneficially owned
by BAOLI following such conversion does not exceed 9.9% of our outstanding common stock. Except
for a preference on liquidation of $.01 per share, each share of Series A Preferred is the economic
equivalent of the ten shares of common stock into which it is convertible. Except as required by
law, the Series A Preferred will not have any voting rights. For a complete description of the
terms of the Series A Preferred, please see a copy of the certificate of designations, a copy of
which is available from us or in the Form 8-K we filed with the SEC on November 15, 2007, which may
be viewed on the website maintained by the SEC (www.sec.gov) and which is incorporated by reference
into this prospectus.
Any prospectus supplement filed in connection with an offering of preferred stock will
describe all material terms of such series of preferred stock and all material terms of any common
stock, if any, issuable upon conversion of such preferred stock. However, the description of the
terms of the preferred stock to be set forth in an applicable prospectus supplement will not be
complete and will be subject to and qualified in its entirety by reference to the certificate of
amendment to our certificate of incorporation relating to the applicable series of preferred stock,
together with our bylaws. The registration statement of which this prospectus forms a part
currently does or will in the future include the certificate of amendment and our bylaws as
exhibits or incorporate them by reference.
The preferred stock will, if and when issued, be fully paid and non-assessable. The holders
of the preferred stock will not have preemptive rights.
Anti-Takeover Effects of Certain Provisions of Delaware Law and Our Charter Documents
The following is a summary of certain provisions of Delaware law, our certificate of
incorporation and our by-laws. This summary does not purport to be complete and is qualified in
its entirety by reference to the corporate law of Delaware and our certificate of incorporation and
by-laws.
Effect of Delaware Anti-Takeover Statute. We are subject to Section 203 of the Delaware
General Corporation Law, an anti-takeover law. In general, Section 203 prohibits a Delaware
corporation from engaging in
9
any business combination with any interested stockholder for a period of three years following
the date that the stockholder became an interested stockholder, unless:
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• |
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prior to that date, the board of directors of the corporation approved either the
business combination or the transaction that resulted in the stockholder becoming an
interested stockholder; |
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• |
|
upon consummation of the transaction that resulted in the stockholder becoming an
interested stockholder, the interested stockholder owned at least 85% of the voting
stock of the corporation outstanding at the time the transaction commenced, excluding
for purposes of determining the number of shares of voting stock outstanding (but not
the voting stock owned by the interested stockholder) those shares owned by persons who
are directors and officers and by excluding employee stock plans in which employee
participants do not have the right to determine whether shares held subject to the plan
will be tendered in a tender or exchange offer; or |
|
|
• |
|
on or subsequent to that date, the business combination is approved by the board of
directors of the corporation and authorized at an annual or special meeting of
stockholders, and not by written consent, by the affirmative vote of at least 66-2/3%
of the outstanding voting stock that is not owned by the interested stockholder. |
Section 203 defines “business combination” to include the following:
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• |
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any merger or consolidation involving the corporation and the interested
stockholder; |
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• |
|
any sale, transfer, pledge or other disposition of 10% or more of the assets of the
corporation involving the interested stockholder; |
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• |
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subject to certain exceptions, any transaction that results in the issuance or
transfer by the corporation of any stock of the corporation to the interested
stockholder; |
|
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• |
|
any transaction involving the corporation that has the effect of increasing the
proportionate share of the stock of any class or series of the corporation beneficially
owned by the interested stockholder; or |
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• |
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the receipt by the interested stockholder of the benefit of any loans, advances,
guarantees, pledges or other financial benefits provided by or through the corporation. |
In general, Section 203 defines an interested stockholder as any entity or person beneficially
owning 15% or more of the outstanding voting stock of the corporation, or who beneficially owns 15%
or more of the outstanding voting stock of the corporation at anytime within a three year period
immediately prior to the date of determining whether such person is an interested stockholder, and
any entity or person affiliated with or controlling or controlled by any of these entities or
persons.
Our Charter Documents. Our charter documents include provisions that may have the effect of
discouraging, delaying or preventing a change in control or an unsolicited acquisition proposal
that a stockholder might consider favorable, including a proposal that might result in the payment
of a premium over the market price for the shares held by our stockholders. Certain of these
provisions are summarized in the following paragraphs.
Classified Board of Directors. Pursuant to our certificate of incorporation, the number of
directors is fixed by our board of directors. Our directors are divided into three classes, each
class to serve a three-year term and to consist as nearly as possible of one third of the
directors. Pursuant to our by-laws, directors elected by stockholders at an annual meeting of
stockholders will be elected by a plurality of all votes cast.
No Stockholder Action by Written Consent. Our by-laws provide that a special meeting of
stockholders may be called only by the chairman of the board, a majority of the entire board of
directors or the president. Stockholders are not permitted to call, or to require that the board
of directors call, a special meeting of stockholders. Moreover, the business permitted to be
conducted at any special meeting of stockholders is limited to the business brought before the
meeting pursuant to the notice of the meeting given. In addition, our certificate of incorporation
provides that any action taken by our stockholders must be effected at an annual or special meeting
of
10
stockholders and may not be taken by written consent instead of a meeting. Our by-laws
establish an advance notice procedure for stockholders to nominate candidates for election as
directors or to bring other business before meetings of our stockholders.
Change in Control Agreements. A number of our executives have agreements with us that entitle
them to payments in certain circumstances following a change in control.
DESCRIPTION OF WARRANTS
We may issue warrants for the purchase of preferred stock or common stock. Warrants may be
issued independently or together with preferred stock or common stock and may be attached to or
separate from any offered securities. Each series of warrants will be issued under a separate
warrant agreement to be entered into between us and a warrant agent. The warrant agreement may
provide that, in certain circumstances, we and the warrant agent will be permitted to amend the
warrant agreement without the consent of the holders of warrants. The warrant agent will act
solely as our agent in connection with the warrants and will not assume any obligation or
relationship of agency or trust for or with any registered holders of warrants or beneficial owners
of warrants. This summary of some provisions of the warrants is not complete. You should refer to
the warrant agreement, including the forms of warrant certificate representing the warrants,
relating to the specific warrants being offered for the complete terms of the warrant agreement and
the warrants. The warrant agreement, together with the terms of warrant certificate and warrants,
will be filed with the SEC in connection with the offering of the specific warrants.
The particular terms of any issue of warrants will be described in the prospectus supplement
relating to the issue. Those terms may include:
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• |
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the title of such warrants; |
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|
• |
|
the aggregate number of such warrants; |
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• |
|
the price or prices at which such warrants will be issued; |
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• |
|
the currency or currencies (including composite currencies) in which the price of
such warrants may be payable; |
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|
• |
|
the amount and terms of the securities purchasable upon exercise of such warrants
and the procedures and conditions relating to the exercise of such warrants; |
|
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• |
|
the purchase price of each of the securities purchasable upon exercise of such
warrants; |
|
|
• |
|
the date on which the right to exercise such warrants will commence and the date on
which such right shall expire; |
|
|
• |
|
any provisions for adjustment of the number or amount of securities to be received
upon exercise of the warrants or of the exercise price of the warrants; |
|
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• |
|
if applicable, the minimum or maximum amount of such warrants that may be exercised
at any one time; |
|
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• |
|
if applicable, the designation and terms of the securities with which such warrants
are issued and the number of such warrants issued with each such security; |
|
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• |
|
if applicable, the date on and after which such warrants and the related securities
will be separately transferable; |
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• |
|
information with respect to book-entry procedures, if any; and |
|
|
• |
|
any other terms of such warrants, including terms, procedures, conditions and
limitations relating to the exercise of such warrants. |
The prospectus supplement relating to any warrants to purchase equity securities may also
include, if applicable, a discussion of certain U.S. federal income tax and ERISA considerations.
11
Warrants for the purchase of preferred stock and/or common stock will be offered and
exercisable for U.S. dollars only. Warrants will be issued in registered form only.
Each warrant will entitle its holder to purchase the number of shares of preferred stock or
common stock at the exercise price set forth in, or calculable as set forth in, the applicable
prospectus supplement. The applicable prospectus supplement will also describe the circumstances
pursuant to which the exercise price and/or the number or amount of the securities to be issued
upon exercise of the warrants would be adjusted and the method of making and notifying the holder
of any such adjustment.
After the close of business on its applicable expiration date, unexercised warrants will
become void. We will specify the place or places where, and the manner in which, warrants may be
exercised in the applicable prospectus supplement.
Upon receipt of payment and the warrant certificate properly completed and duly executed at
the corporate trust office of the warrant agent or any other office indicated in the applicable
prospectus supplement, we will, as soon as practicable, issue and deliver the purchased securities
in the manner described in the applicable prospectus supplement. If less than all of the warrants
represented by the warrant certificate are exercised, a new warrant certificate will be issued for
the remaining warrants.
Prior to the exercise of any warrants to purchase preferred stock or common stock, holders of
the warrants will not have any of the rights of holders of the preferred stock or common stock
purchasable upon exercise, including the right to vote or to receive any payments of dividends on
the preferred stock or common stock purchasable upon exercise.
12
PLAN OF DISTRIBUTION
We may sell the securities being offered hereby in one or more of the following ways from time
to time:
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• |
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through agents to the public or to investors; |
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• |
|
to underwriters for resale to the public or to investors; |
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• |
|
directly to investors; or |
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|
• |
|
through a combination of any of these methods of sale. |
We will set forth in a prospectus supplement the terms of that particular offering of
securities, including:
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• |
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the name or names of any agents or underwriters; |
|
|
• |
|
the purchase price of the securities being offered and the proceeds we will receive
from the sale; |
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• |
|
any over-allotment options under which underwriters may purchase additional
securities from us; |
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• |
|
any agency fees or underwriting discounts and other items constituting agents’ or
underwriters’ compensation; |
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• |
|
any initial public offering price; |
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• |
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any discounts or concessions allowed or reallowed or paid to dealers; and |
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• |
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any securities exchanges or markets on which such securities may be listed. |
Agents
We may designate agents who agree to use their reasonable efforts to solicit purchases of our
securities for the period of their appointment or to sell our securities on a continuing basis.
Underwriters
If we use underwriters for a sale of securities, the underwriters will acquire the securities
for their own account. The underwriters may resell the securities in one or more transactions,
including negotiated transactions, at a fixed public offering price or at varying prices determined
at the time of sale. The obligations of the underwriters to purchase the securities will be
subject to the conditions set forth in the applicable underwriting agreement. The underwriters
will be obligated to purchase all the securities of the series offered if they purchase any of the
securities of that series. We may change from time to time any initial public offering price and
any discounts or concessions the underwriters allow or reallow or pay to dealers.
Direct Sales
We may also sell securities directly to one or more purchasers without using underwriters or
agents. Underwriters, dealers and agents that participate in the distribution of the securities
may be underwriters as defined in the Securities Act, and any discounts or commissions they receive
from us and any profit on their resale of the securities may be treated as underwriting discounts
and commissions under the Securities Act. To the extent known to us, we will identify in the
applicable prospectus supplement any underwriters, dealers or agents and will describe their
compensation.
Derivative Securities
We may enter into derivative transactions with third parties, or sell securities not covered
by this prospectus to third parties in privately negotiated transactions. If the applicable
prospectus supplement indicates, in connection with those derivatives, the third parties may sell
securities covered by this prospectus and the applicable prospectus
13
supplement, including in short sale transactions. If so, the third party may use securities
pledged by us or borrowed from us or others to settle those sales or to close out any related open
borrowings of stock, and may use securities received from us in settlement of those derivatives to
close out any related open borrowings of stock. The third party in such sale transactions will be
an underwriter and will be identified in the applicable prospectus supplement (or a post-effective
amendment).
Trading Markets and Listing of Securities
Unless otherwise specified in the applicable prospectus supplement, each class or series of
securities will be a new issue with no established trading market, other than our common stock,
which is listed on the Nasdaq Stock Market. We may elect to list any other class or series of
securities on any exchange or market, but we are not obligated to do so. It is possible that one
or more underwriters may make a market in a class or series of securities, but the underwriters
will not be obligated to do so and may discontinue any market making at any time without notice.
We cannot give any assurance as to the liquidity of the trading market for any of the securities.
Stabilization Activities
Any underwriter may engage in overallotment, stabilizing transactions, short covering
transactions and penalty bids in accordance with Regulation M under the Exchange Act.
Overallotment involves sales in excess of the offering size, which create a short position.
Stabilizing transactions permit bids to purchase the underlying security so long as the stabilizing
bids do not exceed a specified maximum. Short covering transactions involve purchases of the
securities in the open market after the distribution is completed to cover short positions.
Penalty bids permit the underwriters to reclaim a selling concession from a dealer when the
securities originally sold by the dealer are purchased in a covering transaction to cover short
positions. Those activities may cause the price of the securities to be higher than it would
otherwise be. If commenced, the underwriters may discontinue any of these activities at any time.
Passive Market Making
Any underwriters who are qualified market makers on the Nasdaq Stock Market may engage in
passive market making transactions in the securities on the Nasdaq Stock Market in accordance with
Rule 103 of Regulation M, during the business day prior to the pricing of the offering, before the
commencement of offers or sales of the securities. Passive market makers must comply with
applicable volume and price limitations and must be identified as passive market makers. In
general, a passive market maker must display its bid at a price not in excess of the highest
independent bid for such security. If all independent bids are lowered below the passive market
maker’s bid, however, the passive market maker’s bid must then be lowered when certain purchase
limits are exceeded.
Material Relationships
We may use underwriters, dealers and agents with whom we have a material relationship. To the
extent required, we will describe the nature of any such relationship in any prospectus supplement
naming any such underwriter, dealer or agent. Underwriters, dealers and agents may engage in
transactions with or perform services for us in the ordinary course of their businesses, and we
will include in any prospectus supplement any required disclosure related to such transactions or
services. We may have agreements with the underwriters, dealers and agents to indemnify them
against specified civil liabilities, including liabilities under the Securities Act.
LEGAL MATTERS
Certain legal matters relating to the validity of the common stock, preferred stock and
warrants offered by this prospectus will be passed upon for us by Manatt, Phelps & Philips, LLP,
Los Angeles, California.
EXPERTS
The financial statements of Superconductor Technologies Inc., as of December 31, 2006 and for
the year then ended, incorporated in this Prospectus by reference to the Annual Report on Form 10-K
of Superconductor
14
Technologies Inc. for the year ended December 31, 2006 have been so incorporated in reliance
on the report (which contains an explanatory paragraph related to the Company’s ability to continue
as a going concern) of Stonefield Josephson, independent registered public accounting firm, given
on the authority of said firm as experts in auditing and accounting.
The financial statements of Superconductor Technologies Inc., as of December 31, 2005 and for
the years ended December 31, 2005 and 2004, incorporated in this Prospectus by reference to the
Annual Report on Form 10-K of Superconductor Technologies Inc. for the year ended December 31, 2006
have been so incorporated in reliance on the report (which contains an explanatory paragraph
related to the Company’s ability to continue as a going concern as described in note 2 to the
financial statements) of PricewaterhouseCoopers LLP, independent registered public accounting firm,
given on the authority of said firm as experts in auditing and accounting. In connection with this
Registration Statement on Form S-3, we have engaged our prior independent registered public
accounting firm, PricewaterhouseCoopers LLP, and in connection therewith, agreed to indemnify
PricewaterhouseCoopers LLP for payment of all legal costs and expenses incurred in
PricewaterhouseCoopers LLP’s successful defense of any legal action or proceeding that arises as a
result of inclusion of PricewaterhouseCoopers LLP’s audit report on our past financial statements.
15
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
The following table itemizes the fees and expenses incurred or expected to be incurred by the
Registrant in connection with the preparation and filing of this registration statement. All
amounts in the table below are estimates, except the SEC and FINRA registration fees. The fees and
expenses we will incur in connection with any issuance and distribution of the securities being
registered will be included in a Current Report on Form 8-K and incorporated by reference
herein.
|
|
|
|
|
SEC registration fee |
|
$ |
2,456 |
|
FINRA registration fee |
|
|
8,500 |
|
Printing and engraving expenses |
|
|
5,000 |
|
Legal fees and expenses |
|
|
35,000 |
|
Accounting fees and expenses |
|
|
10,000 |
|
Transfer Agent Fees |
|
|
1,000 |
|
Miscellaneous fees |
|
|
5,000 |
|
|
|
|
|
Total |
|
$ |
66,956 |
|
|
|
|
|
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS
Section 145 of the Delaware Law General Corporation (the “Delaware Law”) provides that a
corporation may indemnify directors and officers as well as other employees and individuals against
expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement in connection
with specified actions, suits or proceedings, whether civil, criminal, administrative or
investigative (other than an action by or in the right of the corporation — a “derivative
action”), if they acted in good faith and in a manner they reasonably believed to be in or not
opposed to the best interests of the corporation, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe their conduct was unlawful. A similar standard is
applicable in the case of derivative actions, except that indemnification only extends to expenses
(including attorneys’ fees) incurred in connection with defense or settlement of such action, and
the statute requires court approval before there can be any indemnification where the person
seeking indemnification has been found liable to the corporation. Under Section 145, a corporation
shall indemnify an agent of the corporation for expenses actually and reasonably incurred if and to
the extent such person was successful on the merits in a proceeding or in defense of any claim,
issue or matter therein.
The Company may from time to time be subject to Section 2115 of the California Corporations
Code (the “California Code”), according to which Section 317 of the California Code applies to the
indemnification of officers and directors of the Registrant. Under Section 317 of the California
Code, permissible indemnification by a corporation of its officers and directors is substantially
the same as permissible indemnification under Section 145 of the Delaware Law, except that (i)
permissible indemnification does not cover actions the person reasonably believed were not opposed
to the best interests of the corporation, as opposed to those the person believed were in fact in
the best interests of the corporation, (ii) the Delaware Law permits advancement of expenses to
agents other than officers and directors only upon approval of the board of directors, (iii) in a
case of stockholders approval of indemnification, the California Code requires certain minimum
votes in favor of such indemnification and excludes the vote of the potentially indemnified person,
and (iv) the California Code only permits independent counsel to approve indemnification if an
independent quorum of directors is not obtainable, while the Delaware Law permits the directors in
any circumstances to appoint counsel to undertake such determination.
Section 145 of the Delaware Law and Section 317 of the California Code provide that they are
not exclusive of other indemnification that may be granted by a corporation’s charter, bylaws,
disinterested director vote, stockholders vote, agreement or otherwise. The limitation of
liability contained in the Company’s Certificate of Incorporation and the indemnification provision
included in the Company’s bylaws are consistent with Delaware
II-1
Law Sections 102(b)(7) and 145 and California Code Section 317. The Company has purchased
directors and officers liability insurance.
Section 145 of the Delaware Law authorizes a court to award, or a corporation’s board of
directors to grant, indemnity to directors and officers in terms sufficiently broad to permit such
indemnification under certain circumstances for liabilities (including reimbursement for expenses
incurred) arising under the Securities Act of 1933. The Company’s Certificate of Incorporation and
the Company’s Bylaws provide for indemnification of its directors, officers, employees and other
agents to the maximum extent permitted by the Delaware Law. In addition, the Company has entered
into indemnification agreements with its officers and directors.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers or persons controlling the Company pursuant to such provisions,
the Company has been informed that in the opinion of the SEC such indemnification is against public
policy as expressed in such Act and is therefore unenforceable.
ITEM 16. EXHIBITS
|
|
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EXHIBIT |
|
|
NUMBER |
|
DESCRIPTION |
|
|
|
1.1
|
|
Form of Underwriting Agreement* |
3.1
|
|
Restated Certificate of Incorporation (1) |
3.2
|
|
Bylaws, as amended (1) |
3.3
|
|
Certificate of Designations of Series A Convertible Preferred Stock (2) |
4.1
|
|
Form of Common Stock Certificate (3) |
4.2
|
|
Form of Warrant Agreement* |
4.3
|
|
Form of Preferred Stock Certificate* |
5.1
|
|
Legal Opinion of Manatt, Phelps & Philips LLP (4) |
23.1
|
|
Consent of Manatt, Phelps & Philips LLP (included in legal opinion filed as
Exhibit 5.1) |
23.2
|
|
Consent of Stonefield Josephson Inc. (4) |
23.3
|
|
Consent of PricewaterhouseCoopers LLP (4) |
24.1
|
|
Powers of Attorney (5) |
|
|
|
* |
|
To be filed by amendment or by a report on Form 8-K. |
|
(1) |
|
Incorporated by reference from the Company’s Quarterly Report on Form 10-Q for
the quarter ended June 30, 2001. |
|
(2) |
|
Incorporated by reference from the Company’s Current Report on Form 8-K filed
November 15, 2007. |
|
(3) |
|
Incorporated by reference from the Company’s Registration Statement on Form S-1
(Reg. No. 33-56714). |
|
(4) |
|
Filed herewith. |
|
(5) |
|
Included herein (see “Power of Attorney” in this registration statement). |
ITEM 17. UNDERTAKINGS
Item 17. Undertakings.
The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the Securities Act
of 1933;
II-2
(ii) To reflect in the prospectus any facts or events arising after the effective
date of the registration statement (or the most recent post-effective amendment thereof)
which, individually or in the aggregate, represent a fundamental change in the information
set forth in the registration statement. Notwithstanding the foregoing, any increase or
decrease in volume of securities offered (if the total dollar value of securities offered
would not exceed that which was registered) and any deviation from the low or high end of
the estimated maximum offering range may be reflected in the form of prospectus filed with
the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and
price represent no more than 20% change in the maximum aggregate offering price set forth
in the “Calculation of Registration Fee” table in the effective registration statement.
(iii) To include any material information with respect to the plan of
distribution not previously disclosed in the registration statement or any material change
such information in the registration statement;
provided, however, that paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) of this
section do not apply if the information required to be included in a post-effective
amendment by those paragraphs is contained in reports filed with or furnished to the
Commission by the registrant pursuant to section 13 or section 15(d) of the Securities
Exchange Act of 1934 that are incorporated by reference in the registration statement, or
is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the
registration statement.
(2) That, for the purpose of determining any liability under the Securities Act of
1933, each such post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any of the
securities being registered which remain unsold at the termination of the offering.
(4) That, for the purpose of determining liability under the Securities Act of 1933 to any
purchaser:
(A) Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed
to be part of the registration statement as of the date the filed prospectus was deemed
part of and included in this Registration Statement; and
(B) Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7)
as part of a registration statement in reliance on Rule 430B relating to an offering made
pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information
required by Section 10(a) of the Securities Act of 1933 shall be deemed to be part of and
included in the registration statement as of the earlier of the date such form of
prospectus is first used after effectiveness or the date of the first contract of sale of
securities in the offering described in the prospectus. As provided in Rule 430B, for
liability purposes of the issuer and any person that is at that date an underwriter, such
date shall be deemed to be a new effective date of the registration statement relating to
the securities in the registration statement to which that prospectus relates, and the
offering of such securities at that time shall be deemed to be the initial bona fide
offering thereof. Provided, however, that no statement made in a registration statement or
prospectus that is part of the registration statement or made in a document incorporated or
deemed incorporated by reference into the registration statement or prospectus that is part
of the registration statement will, as to a purchaser with a time of contract of sale prior
to such effective date, supersede or modify any statement that was made in the registration
statement or prospectus that was part of this Registration Statement or made in any such
document immediately prior to such effective date.
(5) That, for the purpose of determining liability of the registrant under the Securities
Act of 1933 to any purchaser in the initial distribution of the securities: The undersigned
registrant undertakes that in a primary offering of securities of the undersigned registrant
pursuant to this registration statement, regardless of the underwriting method used to sell the
securities to the purchaser, if the securities are offered or sold to such purchaser by means
of any of the following communications, the undersigned registrant will be a seller to the
purchaser and will be considered to offer or sell such securities to such purchaser:
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(i) Any preliminary prospectus or prospectus of the undersigned registrant relating to
the offering required to be filed pursuant to Rule 424;
(ii) Any free writing prospectus relating to the offering prepared by or on behalf of
the undersigned registrant or used or referred to by the undersigned registrant;
(iii) The portion of any other free writing prospectus relating to the offering
containing material information about the undersigned registrant or its securities provided
by or on behalf of the undersigned registrant; and
(iv) Any other communication that is an offer in the offering made by the undersigned
registrant to the purchaser.
The undersigned registrant hereby undertakes that, for purposes of determining any liability
under the Securities Act, each filing of the registrant’s annual report pursuant to Section 13(a)
or 15(d) of the Securities Exchange Act (and, where applicable, each filing of an employee benefit
plan’s annual report pursuant to Section 15(d) of the Securities Exchange Act) that is incorporated
by reference in the registration statement shall be deemed to be a new registration statement
relating to the securities offered herein, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof.
Insofar as indemnification for liabilities arising under the Securities Act, as amended,
may be permitted to directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC
such indemnification is against public policy as expressed in the Exchange Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities (other than
the payment by the registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or proceeding) is asserted
by such director, officer or controlling person in connection with the securities being registered,
the registrant will, unless in the opinion of its counsel the matter has been settled by
controlling precedent submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Exchange Act and will be
governed by the final adjudication of such issue.
The undersigned registrant hereby further undertakes that:
(1) For purposes of determining any liability under the Securities Act of 1933, the
information omitted from the form of prospectus filed as part of this registration statement in
reliance under Rule 430A and contained in a form of prospectus filed by the registrant pursuant
to Rule 424(b)(1) or (4), or 497(h) under the Securities Act shall be deemed to be part of this
registration statement as of the time it was declared effective.
(2) For the purpose of determining any liability under the Securities Act, each
post-effective amendment that contains a form of prospectus shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering thereof.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant
certifies that it has reasonable grounds to believe that the registrant meets all of the
requirements for filing on Form S-3 and has duly caused this registration statement to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of Los Angeles, State of
California, on this 17th day of December, 2007.
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SUPERCONDUCTOR TECHNOLOGIES INC.
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By: |
/s/ Jeffrey A. Quiram
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Jeffrey A. Quiram |
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President and Chief Executive Officer |
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POWER OF ATTORNEY
KNOW ALL THESE PERSONS BY THESE PRESENTS, that each person whose signature appears below
constitutes and appoints Jeffrey A. Quiram and William J. Buchanan, and each of them, his or her
true and lawful attorneys-in-fact and agents with full power of substitution and resubstitution,
for him or her and in his or her name, place and stead, in any and all capacities, to sign any and
all amendments (including post-effective amendments) to this registration statement (and to any
registration statement filed pursuant to Rule 462 under the Securities Act of 1933), and to file
the same, with all exhibits thereto, and other documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of
them, full power and authority to do and perform each and every act and thing requisite and
necessary to be done in and about the premises, as fully to all intents and purposes as he or she
might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and
agents, or any of them, or his or her substitute or substitutes, may lawfully do or cause to be
done by virtue hereof.
Pursuant to the requirements of the Securities Exchange Act of 1934, this registration
statement has been signed below by the following persons on behalf of the Registrant and in the
capacities and on the dates indicated:
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Signature |
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Title |
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Date |
/s/ Jeffrey A. Quiram
Jeffrey A. Quiram |
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President, Chief Executive Officer and
Director
(Principal Executive Officer)
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December 17, 2007 |
/s/ William J. Buchanan
William J. Buchanan |
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Controller (Principal Accounting Officer)
(Principal Financial Officer)
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December 17, 2007 |
/s/ David W. Vellequette
David W. Vellequette |
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Director
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December 17, 2007 |
/s/ Lynn J. Davis
Lynn J. Davis |
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Director
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December 17, 2007 |
/s/ Dennis J. Horowitz
Dennis J. Horowitz |
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Director
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December 17, 2007 |
/s/ Martin A. Kaplan
Martin A. Kaplan |
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Director
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December 17, 2007 |
/s/ John D. Lockton
John D. Lockton |
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Chairman of the Board
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December 17, 2007 |
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