California-based Global Digital Solutions, Inc. and Illinois-Based
Airtronic USA, Inc., the Largest Woman-Owned Small Arms
Manufacturer in the United States, Sign Binding Merger Agreement
and Reorganization Plan
FOLSOM, Calif., Oct. 24, 2012 /PRNewswire/ -- Global Digital
Solutions (PINKSHEETS: GDSI),a company that is
positioning itself as a leader in providing knowledge-based and
culturally attuned social consulting and security-related solutions
in unsettled areas, today announced that the company has signed a
merger agreement and reorganization plan with Illinois-based Airtronic USA, Inc. ("Airtronic").
The Boards of Directors and the requisite number of shareholders
of both companies have also approved the merger agreement and
reorganization plan.
On August 20, 2012, the companies
announced that they had signed a letter of intent to enter into
good faith discussions involving a potential strategic combination
in which Airtronic would be acquired by GDSI. Having
completed those good faith discussions, the companies signed a
merger agreement and reorganization plan on October 16, 2012. The agreement calls for
Airtronic to continue to operate as a subsidiary of GDSI.
Because Airtronic is currently a "debtor in possession" under
chapter 11 of the Bankruptcy Code, the merger agreement is subject
to approval by the United States Bankruptcy Court for the Northern
District of Illinois, Eastern
Division.
"This merger agreement is a very welcome development for both
GDSI and Airtronic," said GDSI founder and largest shareholder
Richard J. Sullivan, who will become
non-executive chairman of GDSI after the acquisition is
completed. "On behalf of the entire team at GDSI, I can say
that we're very much looking forward to finalizing all necessary
approvals and working closely with Dr. Merriellyn Kett and the
Airtronic team. There's no question in my mind that GDSI and
Airtronic will be a very powerful combination that advances GDSI's
strategic vision to become a leader in knowledge-based consulting
and security-related solutions in unsettled, complex areas."
Dr. Kett also commented on the merger agreement. "I'm
delighted that this merger agreement will enable Airtronic to
continue to provide critically important small arms for the U.S.
military and allied militaries. This merger is a big step
forward for Airtronic and our loyal customers and partners around
the world."
Once the merger is finalized, Dr. Kett is expected to continue
serving as CEO of Airtronic.
More About Richard J. Sullivan
Dick Sullivan is an
entrepreneurial pioneer. He served as Chairman and CEO of
Applied Digital Solutions, where he executed a technology rollup
involving 42 acquisitions that succeeded in increasing the
company's share price from $2.50 to a
peak of $18 per share. During
Sullivan's decade-long tenure as Chairman and CEO, Applied Digital
was one of the highest volume traded stocks on NASDAQ.
Sullivan also served as Chairman and CEO of Digital Angel
Corporation and led the effort to spin off VeriChip
Corporation. In 1970, he was a founding member of the
management team of Manufacturing Data Systems, Inc., which listed
at $7.50 per share and was sold to
Schlumberger N.V. in 1980 at $65 per
share.
More About Merriellyn Kett, PhD
Airtronic's CEO and President joined the company in 2003 as a
partner and helped to refocus the business on several essential
battlefield weapons, including the M203 40mm Grenade Launcher – one
of the most widely used grenade launchers in the world – the .50
cal. Machine Gun, the RPG-7 (USA)
Grenade Machine Gun, and most recently the MK 777, a shoulder-fired
recoilless rifle that is light, lethal, and affordable. Dr. Kett
received her doctorate in analytic philosophy from DePaul University in Chicago, IL, and spent a year studying at the
Sorbonne in Paris, France.
Before joining Airtronic in 2003, she worked in infrastructure
development in China, building a
metallurgical coking plant in Shanxi Province.
About Global Digital Solutions, Inc.
Global Digital Solutions is refocusing its business strategy on
providing knowledge-based and culturally attuned societal
consulting and security-related solutions in unsettled areas.
For more information please visit http://www.gdsi.co.
About Airtronic USA,
Inc.
Airtronic is an electro-mechanical engineering design and
manufacturing company. It provides small arms and small arms spare
parts to the U.S. Department of Defense, foreign militaries, and
the law enforcement market. The company also manufactures
medical, avionics, and telecommunications original equipment. The
company's products include grenade launchers, rocket propelled
grenade launchers, grenade launcher guns, flex machine guns,
grenade machine guns, rifles, and magazines. The company was
founded in 1990 and is based in Elk Grove
Village, Illinois. On May 16,
2012, the voluntary petition of Airtronic, Inc. for
liquidation under Chapter 7 was converted to Chapter 11
reorganization. The company had filed for Chapter 7 bankruptcy on
March 13, 2012. For more information,
please visit www.Airtronic.net.
Statements about the company's expectations, including revenue
and earnings and all other statements in this press release, other
than historical facts, are "forward looking" statements and are
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Such forward looking
statements involve risks and uncertainties and are subject to
change at any time. The company's actual results could differ
materially from expected results. In reflecting subsequent events
or circumstances, the company undertakes no obligation to update
forward looking statements.
Contact:
W.J. Delgado
916-838-8833
info@gdsi.co
Richard J. Sullivan
916-535-1713
SOURCE Global Digital Solutions