Akoustis Seeks Strategic Sale via Chapter 11: Navigating Challenges and Opportunities

Akoustis Technologies, Inc. (NASDAQ: AKTS), a leading integrated device manufacturer of patented bulk acoustic wave (BAW) high-band RF filters, has announced its intention to pursue a strategic sale of its business through a voluntary chapter 11 process. This move comes in the wake of a legal case with Qorvo, Inc., in which Akoustis was ordered to pay a total judgement of approximately $59 million in damages, fees, and interest related to allegations of trade secret misappropriation and patent infringement. The chapter 11 process will provide Akoustis with the flexibility to complete its ongoing marketing and sale process while continuing to deliver for its valued customers around the world.

The voluntary chapter 11 filing allows Akoustis to continue operating its business while seeking a strategic sale, providing flexibility to find the best bid for its assets. This process enables the company to maintain its customer base and operations, ensuring a seamless transition to a new owner. By filing for chapter 11, Akoustis can also obtain court approval for certain actions, such as paying critical vendors and employees, ensuring business continuity. Additionally, the chapter 11 process provides a structured framework for evaluating and accepting bids, allowing Akoustis to maximize the value of its assets.

The court-supervised sale process enables Akoustis to execute an organized sale of its assets, providing sufficient time to obtain going concern qualified bids. This process allows the company to seek the highest or otherwise best bid for its assets, ensuring the business is sold free and clear of any Qorvo infringement following the court-ordered cleansing process. By leveraging this process, Akoustis aims to reaffirm that the business being sold is free and clear of any Qorvo infringement, which it firmly believes is the case.



The court will oversee the sale process to ensure Qorvo's intellectual property claims are addressed by approving a sale process that allows for a thorough review of potential buyers' bids, including their ability to satisfy Qorvo's claims. This will involve a competitive bidding process, with interested parties submitting offers for Akoustis' assets. The court will then evaluate these bids, considering factors such as the proposed purchase price, the buyer's ability to satisfy Qorvo's claims, and the impact on Akoustis' ongoing operations. The court may also require the winning bidder to provide assurances or guarantees to address Qorvo's intellectual property claims.

To ensure the business is sold free and clear of any Qorvo infringement, Akoustis will undergo a court-ordered cleansing process. This process involves addressing and resolving any identified infringements, which may include licensing agreements, royalty payments, or other legal remedies. By completing this process, Akoustis aims to reaffirm that the business being sold is free of any Qorvo infringement, making it an attractive investment opportunity for potential buyers.

In conclusion, Akoustis' decision to pursue a strategic sale through a voluntary chapter 11 process demonstrates the company's commitment to addressing Qorvo's intellectual property claims and ensuring a seamless transition to a new owner. The court-supervised sale process provides a structured framework for evaluating and accepting bids, allowing Akoustis to maximize the value of its assets. By undergoing a court-ordered cleansing process, Akoustis aims to reaffirm that the business being sold is free and clear of any Qorvo infringement, making it an attractive investment opportunity for potential buyers. As an informed investor, it is essential to monitor the progress of this strategic sale and evaluate the potential impact on Akoustis' ongoing operations and the broader RF wireless industry.