AirIQ Inc. Announces Sale Closing To CalAmp DataCom, Inc.
TORONTO, ONTARIO -- AirIQ Inc. (TSX: IQ) today announced that the previously announced sale of its Vehicle Finance division, consisting of certain assets of its wholly owned subsidiary, AirIQ U.S., Inc., to CalAmp DataCom, Inc., a subsidiary of CalAmp Corp. closed today. The proceeds of US $19,000,000 in cash converts to CDN $22,350,000 using an exchange rate of CDN1.1764 for each US dollar.
“As a result of this transaction, the Company has improved its ability to manage its core businesses from a position of renewed financial strength,” said Mark Kohler, Chief Financial Officer of AirIQ. “The Significant improvements to the working capital position realized in this transaction, coupled with markedly reduced forecast interest expense and amortization expenses related to the intangible assets sold today also favorably impact the Company’s forecast P & L.”
“The Company is now in a position to plan and prepare for its next phase of development and growth,” said Steve Willey, interim Chief Executive Officer of AirIQ. “It is an exciting time for AirIQ.”
As previously announced, the parties also entered into an escrow agreement whereby US $1.9 million of the proceeds were directed to an escrow account to be held for a period of twelve months from the closing date in support of certain representations and warranties made by the Company to CalAmp.
AirIQ trades on the Toronto Stock Exchange under the symbol IQ. A leader in Global Wireless Security, AirIQ is headquartered in Pickering, near Toronto, Canada, with an office in San Diego, California, U.S.A. The Company operates as a wireless Internet applications service provider specializing in location-based services. AirIQ’s services are offered to three primary markets: Commercial Fleets; Consumer; and Marine Fleets. AirIQ gives vehicle and vessel owners the abilities to manage and protect their mobile assets. AirIQ’s services include: vehicle locating, boundary notification, automated inventory, maintenance reminders, security alerts, vehicle disabling, unauthorized movement alerts and many more features. For additional information on AirIQ or its products and services, please visit the Company’s website at www.airiq.com.
About CalAmp Corp.
CalAmp is a leading provider of wireless communication products that enable anytime/anywhere access to critical information, data and entertainment content. With comprehensive capabilities ranging from product design and development through volume production, CalAmp delivers cost-effective high quality solutions to a broad array of customers and end markets. CalAmp is the leading supplier of Direct Broadcast Satellite (DBS) outdoor customer premise equipment to the U.S. satellite television market. CalAmp also provides wireless data communication solutions for the telemetry and asset tracking markets, private wireless networks, public safety communications and critical infrastructure and process control applications. For additional information, please visit CalAmp’s website at www.calamp.com.
This news release contains forward-looking information based on management’s best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, AirIQ’s operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as “anticipate”, “believe”, “expect”, “plan” or similar words suggesting future outcomes. Such forward-looking statements are as of the date which such statement is made and are subject to a number of known and unknown risks, uncertainties and other factors which could cause actual results or events to differ materially from future results expressed, anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, actual outcomes and results may differ materially from those expressed in such forward-looking statements. Other than as may be required by law, AirIQ disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
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