Superconductor Technologies (SCON) Announces Cost Reduction Plan

Superconductor Technologies Inc. (STI) (Nasdaq: SCON) announced a cost reduction plan for the purpose of aligning its personnel needs and capital requirements as the company explores strategic alternatives it previously announced.

The Company will maintain operations of its Sapphire Cryocooler cryogenics initiatives while ceasing additional manufacturing of its HTS Conductus® wire. The plan also includes a 70% employee workforce reduction. The company thanks its employees for their valuable contributions during their employment.

As a result of the cost reduction plan, management anticipates that it will not incur any significant charges for severance or other employee termination related costs. Management is not currently aware of any other significant charges STI will incur as a result of the cost reduction plan.

Strategic AlternativesAs announced on October 29, 2019, STI’s management and Board are exploring strategic alternatives for the company, which may include, among others, a strategic investment financing that would enable the company to pursue its business plan to commercialize the Conductus wire platform; a business combination such as a merger with another party; or a sale of STI. The company’s timetable for the conclusion of this review and its decisions related to any potential strategic alternatives are subject to the company’s cash limitations noted below.

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