MONTVALE, N.J., May 23, 2018 /PRNewswire/ -- Micronet Enertec
Technologies, Inc. (NASDAQCM: MICT) announced today that it has
completed the previously announced sale of its wholly owned
aerospace and defense subsidiary, Enertec Systems 2001 Ltd., or
Enertec, to Coolisys Technologies Inc., a subsidiary of DPW
Holdings, Inc. (NYSE American: DPW).
"With the closing of this transaction and with a stronger
balance sheet, MICT will focus, in advancing its potential
opportunities in the multi-billion dollar Mobile Resources
Management (MRM) space. We have added over $4.7 million in cash and strengthened our balance
sheet by removing the entire debt of Enertec, which totaled
approximately $4.0 million, bringing
overall effective transaction price to $8.7
million for all of Enertec's assets and liabilities.
With the sale of Enertec, we expect our gross margins to improve
significantly," said David Lucatz, Chief Executive Officer of
Micronet Enertec Technologies, Inc.
"We intend to invest our resources into increasing our sales
momentum in MRM, which produced 121% year-over-year growth in the
first quarter of 2018, with improving margins and a backlog of
$4.7 million. With a fortified
balance sheet, we believe that MICT is well positioned for both
organic growth and expansion through acquisitions."
MICT received over $4.7 million in
cash at the closing (of which 10% will be held in escrow for up to
14 months after the Closing to satisfy certain potential
indemnification claims). The final consideration amount was
adjusted pursuant to the terms of the agreement with DPW as a
result of adjustments relating to certain debts and cash balances
of Enertec at closing. Coolisys also assumed approximately
$4.0 million of Enertec's debt.
"We wish Coolisys success with its acquisition of Enertec, and
we believe our former Enertec customers and employees will be well
served by Coolisys Technologies and DPW Holdings," Lucatz
added.
Micronet Enertec intends to change its name in the near
future.
About Micronet Enertec Technologies, Inc.
Micronet Enertec Technologies, Inc. (NASDAQCM: MICT) provides
rugged mobile devices for the growing commercial Mobile Resource
Management (MRM) market. MICT develops, manufactures and provides
mobile computing platforms for the mobile logistics management
market in the U.S., Europe and
Israel. American manufactured
systems are designed for outdoor and challenging work environments
in trucking, distribution, logistics, public safety and
construction.
Forward-looking Statements
This press release contains express or implied forward-looking
statements within the Private Securities Litigation Reform Act of
1995 and other U.S. Federal securities laws. These forward-looking
statements include, but are not limited to, those statements
regarding our expectation regarding focusing on the MRM space, the
strength of our balance sheet, our expectation that our gross
margins will improve significantly, investing resources into
increasing sales momentum in MRM, that we are well positioned for
both organic growth and expansion through acquisitions, statements
regarding our backlog and changing our corporate name. The
forward-looking statements contained in this press release are
subject to other risks and uncertainties, including those discussed
in the "Risk Factors" section and elsewhere in the Company's Annual
Report on Form 10-K for the year ended December 31, 2017 filed with the Securities and
Exchange Commission and in subsequent filings with the Securities
and Exchange Commission. Except as otherwise required by law, the
Company is under no obligation to (and expressly disclaims any such
obligation to) update or alter its forward-looking statements
whether as a result of new information, future events or
otherwise.
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SOURCE Micronet Enertec Technologies, Inc.