Excellium Inc. Receives Court Approval to Sell Substantially All of its Assets
December 06 2013 - 4:13PM
Marketwired
Excellium Inc. Receives Court Approval to Sell Substantially All of
its Assets
MONCTON, NEW BRUNSWICK--(Marketwired - Dec 6, 2013) - Excellium
Inc. (TSX-VENTURE:XLM) (the "Corporation" or "Excellium"), a Tier
II issuer listed on the TSX Venture Exchange (the "Exchange"),
announces that it has received leave from the Commercial Chamber of
the Superior Court of Quebec to complete the previously announced
sale of substantially all of certain assets relating to its
electronic security division (the "Security Division"), which
constitute substantially all of Excellium's assets, to Site
Integration Plus Inc. ("SIP"). Closing of the sale of the Security
Division to SIP is expected to take place in the coming days.
The purchase price
payable by SIP is equivalent to the sum of $454,000 and the value
of the Security Division's inventory as of closing (which is
estimated at $60,000) (collectively, the Purchase Price), as well
as the value of the Security Division's accounts receivable as of
closing actually collected by the Purchaser within the 12-month
period following closing, less a 5% collection fee (the Accounts
Receivable Value). The Purchase Price will be payable at closing,
subject to a holdback of approximately $41,000 (the Holdback
Amount), and the Accounts Receivable Value will be payable as the
relevant accounts receivable are collected. The Holdback Amount
will be released in favour of the Corporation 12 months after the
closing, subject to any indemnification obligations which may be
owing in favour of SIP pursuant to the terms of the asset purchase
agreement.
The sale of the
Security Division to SIP is further to and consistent with the
strategic review process announced by Excellium on August 29, 2013,
which was undertaken to maximize value for shareholders and other
stakeholders of Excellium, and has resulted from a competitive bid
solicitation process overseen by the Corporation's board of
directors with the assistance of Raymond Chabot Grant Thornton.
Excellium continues to own and operate its remaining business unit,
the Electronic Identification division, and will continue to
explore strategic alternatives and restructuring options in that
regard, which may include a privatization or the entering into of
strategic partnerships or business combinations.
There can be no
assurance that such exploration of strategic alternatives will
result in a transaction being pursued, entered into or consummated.
Excellium does not intend to discuss or disclose developments with
respect to this process until its board of directors has approved a
definitive course of action.
Excellium intends to
submit a proposal to its creditors in due course and will make
further announcements in that regard at the appropriate time.
Excellium is a
security company specialized in biometrics identity systems and
proactive security management and in the integration of security
products for the institutional and industrial markets. Excellium is
active in two distinct but complementary lines of business:
electronic security, which includes security management, access
control and video surveillance, and electronic identification,
comprising background checks and biometric identification.
Excellium's common shares are listed on the Exchange under the
trading symbol "XLM" and its continuous disclosure filings are
available on SEDAR at www.sedar.com. For further information about
Excellium, please visit its website at www.excellium.ca.
Neither TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this
release.
Excellium Inc.Claude RoussinVice President, Administration and
Acting CFO(514) 798-8899
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