Intel, a world renowned leader in processor technology, has now diversified its investment by buying 30% of the shares from Vuzix through a commitment of USD24.8 million. Vuzix is a leader in video eyewear technology innovator and leader. It has introduced four lines of video eyewear products: “Entertainment”, “Enterprise”, “Prosumer” and “Enterprise/Research”.
This Rochester, NY based company had introduced its M100 smart glasses on sale for about a $1000 a pair in the month of November on Amazon. It has made a strategic alliance with Lenovo to get access to and market the Chinese Market for its M100 product, also.
“Intel purchased 49,626 of Vuzix’ Series A Preferred Stock, which are convertible into 4,962,600 shares of Vuzix’ common stock at an initial conversion price of $5.00 per share, subject to adjustment in the event of stock splits, dividends or other combinations. The shares issuable upon conversion of the Series A Preferred Stock represent approximately 30 percent of Vuzix total outstanding stock, assuming full conversion of the Series A Preferred Stock.” says the Investor Relations Contact for the company, Andrew Haag.
Intel, because of the Series A Preferred Stock holder, has voting rights and the right to appointment two members to the Board of Directors. It already has five members on board in Vizux.
Intel has also partnered with other brands such Fossil (watch), Luxottica (eyewear) and Opening Ceremony (fashion). The diversification of investment must keep Intel in a comfortable position.