Video Display Corporation Closes Sale of Z-AXIS and Bear Power
January 16 2014 - 2:47PM
Video Display Corporation (Nasdaq:VIDE), a worldwide leader in the
development of display technology for military, medical and
simulation markets, today announced the closing of the previously
announced Purchase and Sales Agreement of its Phelps, NY
based Z-AXIS Inc. and Bear Power subsidiaries to one of the
subsidiary's original founders. The aggregate consideration for the
sale, being paid approximately 90% in cash and the balance with
fixed interest debt, is expected to result in a taxable gain to
Video Display Corporation of approximately $5.5 million subject to
certain post-closing adjustments, legal fees and other transaction
related expenses.
The transaction was closed under primarily the same terms of the
Purchase Agreements announced on October 3, 2013.
As a result of the sale of the subsidiary, VDC management will
be adjusting its financial targets for fiscal year-end February 28,
2014 to reflect the exclusion of Z-AXIS operating results and will
file a SEC Form 8-K with updated financial numbers reflecting those
revised expectations.
"We are very pleased to announce the closing of the transaction
transferring the ownership of Z-AXIS and Bear Power to the new
owner," said Ron Ordway, CEO of Video Display Corporation. "This is
another integral and important step in the previously announced VDC
program of enhancing shareholder value through strategic sales of
assets, divisions and subsidiaries of the Company."
"Z-AXIS has been a successful part of Video Display Corporation
for many years, and we are grateful to all the Z-AXIS employees for
their dedication and service," added Ordway.
"With the Aydin Displays Inc. and the Z-AXIS transactions now
having been completed, VDC becomes nearly debt free and maintains
cash balances in excess of $10 million. The Company's future plans
are to further develop the remaining display oriented subsidiaries
(AYON CyberSecurity, AYON Visual Systems, Lexel Imaging Systems and
VDC Display Systems) in an effort to further enhance shareholder
value by building revenues and earnings through new products, new
contracts and niche market acquisitions to strengthen these
existing subsidiaries," continued Ordway.
About Video Display Corporation
Video Display Corporation designs, manufactures, markets,
distributes, installs and provides a complete line
of technologically advanced display products and systems for
military, medical and industrial uses, with emphasis on high end
training and simulation applications. We offer one of the best
and most comprehensive customer support service, from basic
components to turnkey systems used by government, military, space,
medical, homeland security and commercial organizations
worldwide.
For more information, visit the Company's web site at
www.videodisplay.com
CONTACT: Ronald D. Ordway, Chairman and CEO
770-938-2080
Video Display (PK) (USOTC:VIDE)
Historical Stock Chart
From Aug 2024 to Sep 2024
Video Display (PK) (USOTC:VIDE)
Historical Stock Chart
From Sep 2023 to Sep 2024