Delaware
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001-38273
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94-3290283
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(State or Other
Jurisdiction of Incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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42307 Osgood Road, Suite I
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Fremont, California
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94539
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(Address of Principal Executive Offices)
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(Zip Code)
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Title of each class
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Trading symbol
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Name of each exchange on which registered
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Class A Common Stock, par value $0.0001 per share
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ACMR
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Nasdaq Global Market
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NOTE: |
ACM Research, Inc., or ACM Research, conducts its business operations principally through its subsidiary ACM Research (Shanghai), Inc., or ACM
Shanghai. Unless the context requires otherwise, references in this report to “our,” “us,” “we” and similar terms refer to ACM Research and its subsidiaries, including ACM Shanghai, collectively.
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Item 1.01.
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Entry into a Material Definitive Agreement.
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Item 7.01.
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Regulation FD Disclosure. |
Item 8.01.
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Other Information.
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a listing, which we refer to as the STAR Listing, of shares of ACM Shanghai on the Shanghai Stock Exchange’s Sci-Tech Innovation Board, known as the STAR Market; and
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a concurrent initial public offering, which we refer to as the STAR IPO, of ACM Shanghai shares in the People’s Republic of China, or the PRC, at a pre-offering
valuation of not less than RMB 5.15 billion ($747.1 million).
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the land lease and building construction for our proposed development and production center in the Lingang region of Shanghai, as described in the Current Report on
Form 8-K we filed with the Securities and Exchange Commission, or SEC, on May 13, 2020;
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product development to upgrade and expand our process equipment targeted at more advanced process nodes, including technical improvement and development of TEBO
megasonic cleaning equipment, Tahoe single wafer wet bench combined cleaning equipment, front-end brush scrubbing equipment, front end process electroplating equipment, Stress Free Polish equipment and vertical furnace equipment; and
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working capital.
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Commitment Letter Regarding the Lock-up of Shares, pursuant to which ACM Research has agreed to a three-year lockup of its shares in ACM Shanghai, including a
prohibition against directing ACM Shanghai to repurchase any of its shares following the closing of the STAR IPO. The lockup period will be extended for six additional months if the daily closing price of ACM Shanghai shares for twenty
consecutive trading days during the first six months following the STAR IPO is lower than the issue price of shares in the STAR IPO.
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Commitment Letter Regarding Shareholding Intent and Intent to Reduce Shareholdings, pursuant to which ACM Research and David H. Wang, Chief Executive Officer,
President and Chair of the Board, have agreed that sale of ACM Shanghai shares during the two-year period following the termination of its lockup period (as described above) will be made (a) in a manner consistent with the regulations of
the China Securities Regulatory Commission, or CSRC, and the Shanghai Stock Exchange, (b) at a price no lower than the issue price of shares the STAR IPO and (c) following a pre‑announcement of its intention to make such sale. Assuming the
lockup period is not extended as described in the preceding paragraph, this agreement will terminate five years following the closing of the STAR IPO.
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Commitment Letter Regarding the Plan and Binding Measures for Stabilizing the Stock Price of ACM Shanghai Within Three Years After Listing, pursuant to which ACM
Research and certain of its officers and directors, including Dr. Wang, have severally agreed that if, during the three‑year period following the STAR IPO, the daily closing price of the shares of ACM Shanghai for twenty consecutive trading
days is lower than the audited net assets value per share (as defined) for the fiscal year prior to the STAR IPO, the parties agree that they will take measures to stabilize the ACM Shanghai share price by either (a) ACM Shanghai
repurchasing shares purchased by minority shareholders or (b) ACM Research, Dr. Wang or other executive officers and directors purchasing additional ACM Shanghai shares.
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Commitment Letter Regarding Fraudulent Issuance of Listed Shares, pursuant to which ACM Research, ACM Shanghai and Dr. Wang have represented that there has been no
fraud in the STAR IPO and undertake to purchase any shares of ACM Shanghai issued pursuant to the STAR IPO if it is determined by the CSRC and other relevant authorities that fraud was so committed or that ACM Shanghai was ineligible for
the STAR IPO.
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Commitment Letter Regarding the Lack of False Records, Misleading Statements or Major Omissions, pursuant to which ACM Research has covenanted not to make any
misrepresentations, misleading statements or major omissions in its disclosure documents relating to the STAR IPO and has agreed to compensate investors in ACM Shanghai for losses according to law in the event of a breach.
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Commitment Letter Regarding Making Up for Diluted Immediate Returns, pursuant to which ACM Research has undertaken to prevent the risk of dilution to ACM Shanghai
shareholders and to assert influence of ACM Shanghai’s operations only to the extent of ACM Research’s authority as a majority shareholder.
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Commitment Letter Regarding Unfulfilled Commitment on Binding Measures, pursuant to which ACM Research and Dr. Wang have committed to fulfill the obligations of ACM
Research set forth in the PID and have agreed to take certain corrective actions for failure to do so, including publicly explaining reasons for such failure, compensate investors in ACM Shanghai for losses according to law, foregoing
dividends from ACM Shanghai, and returning any gains that resulted from such failure.
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Letter of Commitment on the Avoidance of Competition in the Same Industry, pursuant to which ACM Research has agreed that it will not, without the prior consent of
ACM Shanghai, compete with the principal business of ACM Shanghai, including supporting any companies that may compete with ACM Shanghai. If ACM Research engages in any competitive activity, it has agreed to terminate or otherwise transfer
such activity and, in the case of transfer, grants to ACM Shanghai a right of first refusal to acquire such transferred activity. The commitment under this agreement will remain in effect so long as ACM Research remains the controlling
shareholder of ACM Shanghai.
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Commitment Letter Regarding the Standardization and Reduction of Related Transactions, pursuant to which ACM Research has agreed that any transactions between ACM
Research and ACM Shanghai will be standardized, to the extent possible, at arm’s-length and fair to ACM Shanghai.
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Commitment Letter Regarding the Avoidance of Funds Occupation and Illegal Guarantee, pursuant to which ACM Research has agreed that the funds of ACM Shanghai and its
controlled companies have not, and will not, be used for non-operating purposes, including that ACM Shanghai will not provide any guarantees in violation of applicable regulations.
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Statement and Commitment Letter, pursuant to which ACM Research has covenanted as to its ownership of shares of ACM Shanghai and related matters.
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Commitment Letter Regarding Property Lease Matters, pursuant to which ACM Research has guaranteed in full the payment of all costs of any relocation of ACM Shanghai
resulting from ACM Shanghai being unable to continue to lease and use, due to certain property mortgage matters, either of the two properties it currently leases in Shanghai for ACM Shanghai’s headquarters and manufacturing space.
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Commitment Letter Regarding Social Insurance and Housing Provident Fund Matters, pursuant to which ACM Research has guaranteed in full the payment of ACM Shanghai’s
obligations to make certain social insurance and housing fund contributions.
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Commitment Letter Regarding Foreign Exchange Matters pursuant to which ACM Research has agreed to be responsible for any obligations imposed by the foreign exchange
management department relating to the STAR IPO or for any foreign exchange matters existing before the STAR IPO.
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Confirmation and Commitment Letter Regarding the Historical Evolution Related Matters Regarding ACM Shanghai, pursuant to which ACM Research has covenanted as to
historical developments regarding ACM Shanghai, including with respect to certain intellectual property of ACM Shanghai.
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Confirmation Letter, pursuant to which ACM Research has confirmed it did not use any intellectual property licensed under its Technology License Agreement dated
January 31, 2007 with ACM Shanghai (under which ACM Research granted ACM Shanghai a worldwide exclusive license to the intellectual property owned or controlled by ACM Shanghai) in a manner inconsistent with such agreement, that it has not
otherwise transferred or authorized anyone else to use the licensed intellectual property, and that no dispute exists with respect to the intellectual property of ACM Shanghai.
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he will not voluntarily convert any Class B common stock held by him into Class A common stock for a three-year period after the completion of the STAR IPO;
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he will lockup, and not sell, any shares of ACM Shanghai directly or indirectly owned by him for a three-year period after the completion of the STAR IPO, subject to
a six-month extension if the daily closing price of ACM Shanghai shares for twenty consecutive trading days during the first six months following the STAR IPO is lower than the issue price of shares in the STAR IPO;
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following the expiration of his lockup obligations, his sales of ACM Shanghai shares will be subject to volume limitations for a period of four years and as long as
he continues to serve on the board of directors of ACM Shanghai;
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he will cause ACM Shanghai to fulfill its obligations set forth in the PID and to take certain actions if it fails to do so, including compensating investors for
losses and publicly explaining the reason for any failure;
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he will refrain from competing, or causing any entities controlled by him to compete, with the primary business of ACM Shanghai;
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he will, to the extent possible, cause related party transactions with ACM Shanghai to be standardized and ensure that such transactions are fair to ACM Shanghai; and
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he will not use the funds of ACM Shanghai for personal gain or any other unlawful purpose.
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In December 2018 the SEC and the PCAOB issued a joint statement highlighting continued challenges faced by U.S. regulators in their oversight of financial statement
audits of U.S.-listed reporting companies with significant operations in the PRC.
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In June 2019 a bipartisan group of lawmakers introduced bills in both houses of the U.S. Congress that, if passed, would have required the SEC to maintain a list of
reporting companies for which the PCAOB is not able to inspect or investigate an auditor report issued by a foreign public accounting firm. The proposed Ensuring Quality Information and Transparency for Abroad-Based Listings on our
Exchanges Act, or EQUITABLE Act, would have prescribed increased disclosure requirements for these reporting companies and, beginning in 2025, provided for the delisting from U.S. stock exchanges of reporting companies included on the SEC’s
list for three consecutive years.
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Item 9.01.
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Financial Statements and Exhibits.
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Exhibit
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Description
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Commitment Letter Regarding the Lock-up of Shares, effective as of May 26, 2020, of ACM Research, Inc.
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Commitment Letter Regarding Shareholding Intent and Intent to Reduce Shareholding, effective as of May
26, 2020, of ACM Research, Inc. and David H. Wang
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Commitment Letter Regarding the Plan and Binding Measures for Stabilizing the Stock Price of ACM
Research (Shanghai), Inc. Within Three Years After Listing, effective as of May 26, 2020, of ACM Research, Inc., ACM Research (Shanghai), Inc., and certain individuals named therein
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Commitment Letter Regarding Fraudulent Issuance of Listed Shares, effective as of May 26, 2020, of ACM
Research, Inc., ACM Research (Shanghai), Inc. and David H. Wang
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10.05*†
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Commitment Letter Regarding the Lack of False Records, Misleading Statements or Major Omissions in the
Preliminary Information Document, effective as of May 26, 2020, of ACM Research, Inc.
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Commitment Letter Regarding Making Up for Diluted Immediate Returns, effective as of May 26, 2020, of
ACM Research, Inc.
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10.07*†
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Commitment Letter Regarding Unfulfilled Commitment on Binding Measures, effective as of May 26, 2020, of
ACM Research, Inc. and David H. Wang
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Commitment Letter Regarding the Avoidance of Competition in the Same Industry, effective as of May 26,
2020, of ACM Research, Inc.
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Commitment Letter Regarding the Standardization and Reduction of Related Transactions, effective as of
May 26, 2020, of ACM Research, Inc.
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Commitment Letter Regarding the Avoidance of Funds Occupation and Illegal Guarantee, effective as of May
26, 2020, of ACM Research, Inc.
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10.11*†
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Statement and Commitment Letter, effective as of May 26, 2020, of ACM Research, Inc.
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Commitment Letter Regarding Property Lease Matters, effective as of May 26, 2020, of ACM Research, Inc.
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Commitment Letter Regarding Social Insurance and Housing Provident Fund Matters, effective as of May 26,
2020, of ACM Research, Inc.
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Commitment Letter Regarding Foreign Exchange Matters, effective as of May 26, 2020, of ACM Research,
Inc.
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Confirmation and Commitment Letter Regarding the Historical Evolution Related Matters Regarding ACM
Research (Shanghai), Inc., effective as of May 26, 2020, of ACM Research, Inc.
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Confirmation Letter, effective as of May 26, 2020, of ACM Research, Inc.
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99.01*†
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Preliminary Information Document of ACM Research (Shanghai), Inc.
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ACM RESEARCH, INC.
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By:
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/s/ Mark McKechnie
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Mark McKechnie
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Chief Financial Officer and Treasurer
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