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Apple Sapphire Supplier GT Advanced Technologies Removed From NASDAQ Exchange

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MacRumors

macrumors bot
Original poster
Apr 12, 2001
51,529
13,163



Apple sapphire supplier GT Advanced Technologies' woes continue today with the announcement that it will not appeal the suspension of its stock on the NASDAQ stock exchange. As part of this decision, the company's stock is no longer being traded on the NASDAQ stock market effective today, October 16. This removal was expected and is the result of the company's recent Chapter 11 bankruptcy.
GT Advanced Technologies Inc. today announced that it will not pursue an appeal of the determination by The NASDAQ Stock Market LLC ("NASDAQ") to suspend trading in the Company's common stock based on the Company's voluntary petition for reorganization relief under Chapter 11 of the United States Bankruptcy Code. The Company has been informed that NASDAQ will suspend trading in the Company's common stock effective at the opening of the market on October 16, 2014.
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GT's stock plummeted 90 percent following its bankruptcy announcement earlier this month, and has continued to fall since then, closing at just 44 cents per share yesterday. The stock will continue to trade under the symbol GTATQ on the OTC Pink marketplace.

As part of the original deal, Apple made three loan payments to GT totaling $440 million and said it was working with GT to help overcome technical challenges to qualify for the fourth and final prepayment loan of $139 million. Apple also appeared set to delay scheduled repayments on the debt. But under the weight of difficulties that began at least as early as February, GT found itself unable to carry on its business operations and filed for bankruptcy with plans to shut down its sapphire production facilities.

Article Link: Apple Sapphire Supplier GT Advanced Technologies Removed From NASDAQ Exchange
 
Article Link
https://www.macrumors.com/2014/10/16/gt-advanced-nasdaq/
T

theanimala

macrumors 6502
Mar 2, 2007
382
142
Their CEO should be investigated for selling all of that stock AND for signing such a stupid deal with Apple...
 
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T

thasan

macrumors 65816
Oct 19, 2007
1,090
1,018
Germany
so what happens if u own its stock and can only trade through nasdaq :(
thankfully i dont have anything in this company
 
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Dilster3k

Dilster3k

macrumors 6502a
Jul 20, 2014
790
3,205
This is certainly one of the shadiest, fishiest, weirdest & interesting things I've seen in awhile. And yet much secrecy surrounding this... Something definitely isn't right here.
 
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sampaul

sampaul

macrumors member
Aug 22, 2012
81
191
Philadelphia
Wow, I wonder what led to that insane drop in stocks. I mean they were doing alright until the first week of October.
 
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DeadSeaMac

DeadSeaMac

macrumors member
Sep 18, 2013
73
88
Not surprised

When your stock goes below $1.00 after announcing you're filing for Chapter 11, the fat lady is already singing because this party is over.

Gorilla Glass wins this round but sapphire crystal displays will eventually come to the iPhone, but GTAT won't be the supplier.

Imagine what Apple could have done with the 1/2 billion dollars they threw (away) at GTAT - A U2 world tour sponsored by :apple:
 
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69Mustang

69Mustang

macrumors 604
Jan 7, 2014
7,671
14,517
In between a rock and a hard place
I have to question Apples judgement regarding GTAT

Yesterday, forum member Makosuke and I were discussing the merits of the original deal and (s)he brought up an interesting point. If the info from that discussion is valid then I'm looking at Apple with a sideways glance and asking why?

"One other thing to take into account that I hadn't even realized before: I have no idea what the detailed financials of GTA are, but if you look at their annual financial statements, in 2011 they grossed about $900M with a profit of $175M; in 2012 they grossed $955M with profit of $183M; in 2013, they grossed $298M and came up $82M in the hole--a precipitous 70% decline in gross revenue. Part of their shortfall was due to increase in R&D spending, but there was also a drastic falloff in sales in 2013. Q1 2013 (six months before the Apple deal) was, in fact, pretty much the worst quarter they had ever reported..." - excerpted from Makosuke

Personally, I wouldn't have fallen for GT's song and dance but, if true, it would go a long way towards explaining why Apple had such a draconian contract drawn up. They may have been skeptical as well but considered $500 million an acceptable gamble. Now that I look at, I guess I really can't question Apple's judgement. My pocket and Apple's pocket hold slightly different volumes. Just slightly. :rolleyes: Relative to the potential reward, the risk for Apple wasn't that great.

Carry on. Nothing to see here.:)
 
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EldonChew

EldonChew

macrumors regular
Dec 3, 2011
220
181
Singapore
DeadSeaMac said:
When your stock goes below $1.00 after announcing you're filing for Chapter 11, the fat lady is already singing because this party is over.

Gorilla Glass wins this round but sapphire crystal displays will eventually come to the iPhone, but GTAT won't be the supplier.

Imagine what Apple could have done with the 1/2 billion dollars they threw (away) at GTAT - A U2 world tour sponsored by :apple:
Click to expand...

Apple still owns the sapphire equipments and facility(ies) right?
 
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ricci

ricci

macrumors 6502
Aug 21, 2012
259
13
NYC
There is a reason other companies don't or can't implement sapphire in their phones ! Apple has high quality standards that this comp couldn't meet! I'm still holding out that the next phones will have Sapphire screens! We have a year and I would like to think all that machinery will not go to waste! Wonder if something is going on behind the scenes !
 
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M

marksanctuary

macrumors newbie
Sep 26, 2014
3
0
Apple comes in with high expectations as a typical IT company does. Asks for something done that is bleeding edge pushing for miracles in tech.

Smaller company with bleeding edge designs commits to meeting high expectations without knowing for sure if the challenging tech really can be done.

... its a gamble in making millions for the little guy.

... miracle ends up being much more difficult.

... guy in charge of smaller company is selling stock to make his income but does not follow the proper methods for doing so makes him look suspicious.

Either there is some thing sly going on here or it was the case of a dream that could not become a reality in the timeframe Apple wanted it done.
 
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M

mrjr101

macrumors regular
Jul 29, 2013
103
10
I would hate to work for this company right now. Big boss cashing out and my stocks going poo does not sound promising at all. This is no good news for Apple either as they thought these folks would deliver with the Sapphire production. We wont see Sapphire in our displays for a while.
 
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M

machtv

macrumors regular
Oct 6, 2014
171
41
sampaul said:
Wow, I wonder what led to that insane drop in stocks. I mean they were doing alright until the first week of October.
Click to expand...

hell i wonder what happend to apple stock since the new iphone6 came out. it's been on the down swing. while samsung is on the up swing.

example currently
apple is at -1.15%
sammy is at +.45
 
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B

budselectjr

macrumors 6502a
Oct 6, 2009
991
1,822
Minnesota
machtv said:
hell i wonder what happend to apple stock since the new iphone6 came out. it's been on the down swing. while samsung is on the up swing.

example currently
apple is at -1.15%
sammy is at +.45
Click to expand...

The Nasdaq is down 8% since then in case you haven't been paying attention.
 
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A

ateslik

macrumors 6502
Oct 18, 2008
346
458
Apple is going to have the last laugh when everybody realizes the Cupertino Spaceship is actually a giant sapphire furnace! What a kick in the boules!!
 
Comment
DeadSeaMac

DeadSeaMac

macrumors member
Sep 18, 2013
73
88
EldonChew said:
Apple still owns the sapphire equipments and facility(ies) right?
Click to expand...

Who knows? Reports are stating that Apple will own the Mesa, AZ plant while GTAT will own and operate the furnaces in hopes that GTAT would prove to Apple that they could meet their production requirements as outlined in the 1/2 billion dollar initial loan agreement.

It's really up to Apple what they want to do with GTAT. You know they gave sapphire suppliers that will fill the void if GTAT goes belly up...
 
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N

Nee412

macrumors 6502
Jun 25, 2010
281
8
Sunny England!
The simple thing is their stocks were high because it was all over the internet that they had a deal with Apple and were rumoured to be providing the screens for the iPhone 6. That fell through for whatever reason and so now they haven't got a solid business.

I feel sorry for anyone who invested thinking this was a sure deal.
 
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IJ Reilly

IJ Reilly

macrumors P6
Jul 16, 2002
17,889
1,478
Palookaville
Dilster3k said:
This is certainly one of the shadiest, fishiest, weirdest & interesting things I've seen in awhile. And yet much secrecy surrounding this... Something definitely isn't right here.
Click to expand...

This kind of thing happens all the time. You are only aware of this one because Apple is involved.

----------
DeadSeaMac said:
Who knows? Reports are stating that Apple will own the Mesa, AZ plant while GTAT will own and operate the furnaces in hopes that GTAT would prove to Apple that they could meet their production requirements as outlined in the 1/2 billion dollar initial loan agreement.

It's really up to Apple what they want to do with GTAT. You know they gave sapphire suppliers that will fill the void if GTAT goes belly up...
Click to expand...

It's really up the bankruptcy court judge. Apple is likely to be GT's largest creditor, but in bankruptcy the court decides who gets paid and whether prior contracts are honored.
 
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