Hi Score Announces Sale of Its Subsidiary, DMD Lighting, for Cash and a Share of Future DMD Profits
May 18 2012 - 4:30PM
Marketwired
Hi Score Corporation (PINKSHEETS: HSCO) announced today that it has
executed a transaction where Hi Score subsidiary DMD Lighting and
Energy Control Systems has been sold to an unnamed private
interest. The terms of the transaction, which occurred in the first
quarter of 2012, prohibited the public announcement until the
second quarter of 2012. The deal allows Hi Score to retain 25% of
the profits from DMD over the next three years while losing all
liability for continued operating expenses. "We shed over 200
thousand dollars in debt as well as at least a quarter million
dollars in annual operating expenses... This is cash that we do not
have to spend... The deal is great for our balance sheet and allows
us to continue to receive a healthy amount of the profit without
being responsible for the day to day," said Hi Score CEO Michael
Zoyes.
The move frees up Hi Score to pursue acquisitions of profitable
companies... not only in the energy space but also other sectors...
the real qualifier is that the acquisition target is profitable or
is a new venture with a very high probability for profitability.
The move also keeps Dominick Falso on as COO. "I am very excited
about our opportunities," said Dominick, "especially in the Energy
Saving Lighting end of the business... which typically has greater
margins than the traditional lighting business... The future looks
very bright." Dominick Falso was appointed as Hi Score's Chief
Operating Officer in January of 2011.
About Hi Score
Hi Score Corporation is a supplier of eco-friendly lighting
products in the Western Hemisphere. It offers its customers the
fiscal and ecological practicality of utilizing safe, efficient,
solid state green lighting rather than conventional fluorescent and
incandescent bulbs. The Company offers the widest selection of high
quality, long lasting LED lighting products that that can replace
existing incandescent, fluorescent and halogen bulbs as well as
compact fluorescent lights. Additionally the Company offers Compact
Fluorescent and Halogen Lighting under its EcoGreenBulb and REPCO
Labels, respectively. The Company sells its products directly to
distributors, consumers, businesses as well as to
municipalities.
Safe Harbor Statement: This release includes "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934 that are based upon assumptions that in the future may
prove not to have been accurate and are subject to significant
risks and uncertainties, including statements as to the future
performance of the company and the risks and uncertainties detailed
from time to time in reports filed by the company with the
Securities and Exchange Commission. Although the company believes
that the expectations reflected in its forward-looking statements
are reasonable, it can give no assurance that such expectations or
any of its forward-looking statements will prove to be correct.
Factors that could cause results to differ include, but are not
limited to, the company's ability to raise necessary financing,
retention of key personnel, timely delivery of inventory from the
company's contract manufacturers, timely product development,
product acceptance, and the impact of competitive services and
products, in addition to general economic risks and
uncertainties.
CONTACT: Hi Score Corporation Michael Zoyes President (954)
990-6827 www.hiscorecorporation.com
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