ADDvantage Technologies Group, Inc. Closes Sales of Cable TV Segment for $10.3 million
02 July 2019 - 10:30PM
ADDvantage Technologies Group, Inc. (“ADDvantage” or the “Company”)
today announced the closing of the sale of its Cable TV segment on
July 1, 2019 to Leveling 8, Inc. (“Leveling 8”), which purchased
all of the outstanding shares and limited liability company
membership interests of the Company’s Cable TV segment for a total
purchase price of $10.3 million, subject to certain post-closing
adjustments. Leveling 8 is a company owned 100% by David E.
Chymiak, the Company’s Chief Technology Officer, President of
Tulsat, substantial ADDvantage shareholder and a member of its
Board of Directors. The purchase price consists of $3.9 million of
cash, less $2.1 million of cash previously received from the sales
of the ComTech facility in March 2019 and the NCS facility in June
2019, and a $6.4 million promissory note bearing interest at 6% per
annum. The note will be paid over five years and is personally
guaranteed by David E. Chymiak.
As previously announced in its press release
dated March 29, 2019, the Company closed the sale of its
Warminster, Pennsylvania facility, which houses the Company’s NCS
Industries business within the Cable TV segment, to David Chymiak,
LLC, a company controlled by David Chymiak, on June 14, 2019 for a
purchase price of $0.7M. This amount was deducted from the final
proceeds received from the sale of the Cable TV Segment.
Through its cable television subsidiaries,
ADDvantage operated a national network of technical repair centers
focused primarily on supporting cable television equipment. These
operations consisted of Tulsat, LLC (“Tulsat”), NCS Industries,
Inc. (“NCS”), ADDvantage Technologies Group of Missouri, Inc.
(“ComTech”), ADDvantage Technologies Group of Texas, Inc.
(“Tulsat-Texas”), and Tulsat-Atlanta, L.L.C. (“Tulsat-Atlanta”).
The sale proceeds will allow ADDvantage Technologies to commit more
capital and resources to its expansion strategy in the Wireless
Infrastructure Services and Telco segments.
Joe Hart, President and CEO of the Company,
stated, “The sale of the Cable TV segment is a significant
accomplishment and concludes our efforts to raise capital through
the sale of real estate and our cable television business. This
additional capital will allow us to solidify and expand our
position in the telecommunications and wireless infrastructure
services markets as we continue to invest in the long term growth
of ADDvantage Technologies.”
About ADDvantage Technologies Group,
Inc.
ADDvantage Technologies Group, Inc.
(NASDAQ: AEY) is a communications infrastructure services and
equipment provider operating a diversified group of companies.
Through Fulton Technologies, the Company provides turn-key wireless
infrastructure services including the installation, modification
and upgrading of equipment on communication towers and small cell
sites for wireless carriers, national integrators, tower owners and
major equipment manufacturers. Through its Nave Communications and
Triton Datacom subsidiaries, ADDvantage sells equipment and
hardware used to acquire, distribute, and protect the
communications signals carried on fiber optic, coaxial cable and
wireless distribution systems. ADDvantage also offers repair
services focused on telecommunication equipment and recycling
surplus and related obsolete telecommunications
equipment.
ADDvantage operates through its subsidiaries,
Fulton Technologies, Nave Communications and Triton Datacom. For
more information, please visit the corporate web site at
www.addvantagetechnologies.com.
The information in this announcement may include
forward-looking statements. All statements, other than statements
of historical facts, which address activities, events or
developments that the Company expects or anticipates will or may
occur in the future, are forward-looking statements. These
statements are subject to risks and uncertainties, which could
cause actual results and developments to differ materially from
these statements. A complete discussion of these risks and
uncertainties is contained in the Company’s reports and documents
filed from time to time with the Securities and Exchange
Commission.
For further information |
KCSA Strategic Communications |
Company Contact: |
Elizabeth Barker |
Scott Francis |
(212) 896-1203 |
(918) 251-9121 |
ebarker@kcsa.com |
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