nCoat, Inc. has entered into a letter of intent (LOI) with the European engineering firm Target Electronic Service GmbH (Target). The LOI formalizes a business relationship between Target and nCoat, specifically for the purpose of collaborating together for expansion of each of their business interests in the U.S. as well as in Europe. To help facilitate this expansion, nCoat expects to increase the common capital stock of Target by nearly 30% within 90 days following the execution of this LOI.
Both parties propose to collaborate in areas of mutual technical and business benefit, including furthering development of both Target and nCoat’s international revenue and operating footprint in their respective primary markets. Preliminary collaboration plans include cross sales opportunities to existing coating customers, exploration of opportunities for Target to use nCoat coating products with Target application services and the development of joint engineering collaboration for future product and service offerings.
Target primarily provides the application of protective coatings (conformal coatings) on electronic assemblies (circuit boards). The company principally uses proprietary processes and currently coats in excess of one million assemblies annually.