Digital Angel Forms Special Committee of Board of Directors to Consider Strategic Alternatives to Improve Its Capital Structure
July 12 2006 - 1:52PM
PR Newswire (US)
SO. ST. PAUL, Minn., July 12 /PRNewswire-FirstCall/ -- Digital
Angel Corporation (AMEX:DOC), an advanced technology company in the
field of rapid and accurate identification, location tracking, and
condition monitoring of high-value assets, announced today the
formation of a Special Committee of its Board of Directors to
consider strategic alternatives to improve its capital structure
and maximize shareholder value through growth and other strategic
opportunities. The Special Committee will include all independent
directors and is charged with the responsibility of interviewing
and hiring strategic advisors/investment bankers, reviewing
strategic alternatives and pursuing those alternatives that it
deems most advantageous for the company. "We believe that the
current valuation of Digital Angel does not reflect the significant
progress we have made across our business units," said Digital
Angel President and CEO Kevin N. McGrath. "As a result, we feel it
is prudent to consider strategic alternatives at this time to
improve our capital structure, outline growth opportunities and
enhance shareholder value. The best method to do this is to appoint
an independent committee (all Board members other than myself and
our Chairman, Scott R. Silverman) chaired by Michael S. Zarriello.
Mr. Zarriello's extensive background in finance and investment
banking clearly qualifies him to lead this charge." Mr. Zarriello
has been a Director of Digital Angel since 2003. He is currently a
Senior Vice President and Chief Financial Officer of Scottsdale,
AZ-based Rural/Metro Corporation. He is a former Senior Managing
Director of Jesup & Lamont Securities Corporation and President
of Jesup & Lamont Merchant Partners LLC. Prior to that, he was
a Managing Director-Principal of Bear Stearns & Co. Before that
he was Chief Financial Officer of United States Leather Holdings,
Inc. and Chief Financial Officer of Avon Products, Inc., Healthcare
Division. About Digital Angel Corporation Digital Angel Corporation
develops and deploys sensor and communications technologies that
enable rapid and accurate identification, location tracking, and
condition monitoring of high-value assets. Applications for the
Company's products include identification and monitoring of humans,
pets, fish, poultry and livestock through its patented implantable
microchips; location tracking and message monitoring of vehicles
and aircraft in remote locations through systems that integrate GPS
and geosynchronous satellite communications; and monitoring of
asset conditions such as temperature and movement, through advanced
miniature sensors. Digital Angel Corporation is majority-owned by
Applied Digital Inc. (NASDAQ:ADSX). For more information about
Digital Angel, please visit http://www.digitalangelcorp.com/. The
statements in this press release that are not strictly historical,
are "forward-looking" statements within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 and are intended to be covered by the safe
harbors created by these sections. The forward-looking statements
are subject to risks and uncertainties and the actual results that
the Company achieves may differ materially from these
forward-looking statements due to such risks and uncertainties,
including, but not limited to, that Applied Digital Inc. owns 55.4%
of the Company's common stock, that new accounting pronouncements
regarding expensing of share based compensation may impact the
Company's future results of operations, the Company may continue to
incur net losses, infringement by third parties on the Company's
intellectual property or development of substantially equivalent
proprietary technology by the Company's competitors could
negatively impact the Company's business, domestic and foreign
government regulation and other factors could impair the Company's
ability to develop and sell its products in certain markets, the
Company relies on sales to government contractors for its animal
identification and search and rescue beacon products, and any
decline in the demand by these customers for such products could
negatively affect the Company's business, the Company depends on a
single production arrangement for its patented syringe-injectable
microchips, and the loss of or any significant reduction in the
production could have an adverse effect on the Company's business,
technological change could cause the Company's products to become
obsolete, the loss of one of the Company's principal customers
could negatively impact the Company's net revenue, the Company's
earnings will decline if the Company writes off goodwill and other
intangible assets, options and warrants outstanding and available
for issuance may adversely affect the market price of the Company's
common stock, currency exchange rate fluctuations could have an
adverse effect on the Company's sales and financial results, the
Company depends on a small team of senior management. A detailed
statement of risks and uncertainties is contained in the Company's
reports to the Securities and Exchange Commission, including in
particular the Company's Form 10-K for the fiscal year ended
December 31, 2005. Investors and stockholders are urged to read
this document carefully. The Company can offer no assurances that
any projections, assumptions or forecasts made or discussed in this
release will be met, and investors should understand the risks of
investing solely due to such projections. The Company undertakes no
obligation to revise any forward-looking statements in order to
reflect events or circumstances that may arise after the date of
this press release. Contact: Allen & Caron Inc Michael
Lucarelli (investors) Len Hall (media) 212-691-8087 949-474-4300
m.lucarelli@allencaron DATASOURCE: Digital Angel Corporation
CONTACT: Investors, Michael Lucarelli, +1-212-691-8087,
m.lucarelli@allencaron, or Media, Len Hall, +1-949-474-4300, , both
of Allen & Caron Inc, for Digital Angel Corporation Web site:
http://www.digitalangelcorp.com/
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