WPCS Signs Non-Binding Letter of Intent to Sell Its Ownership Stake in China Joint Venture
May 14 2014 - 9:00AM
Marketwired
WPCS Signs Non-Binding Letter of Intent to Sell Its Ownership Stake
in China Joint Venture
EXTON, PA--(Marketwired - May 14, 2014) - WPCS International
Incorporated (NASDAQ: WPCS) which specializes in contracting
services for communications infrastructure and the development of a
Bitcoin trading platform, today announced that the Company has
signed a non-binding letter of intent ("LOI") to sell its 60%
majority ownership interest in Taian AGS Pipeline Construction Co.
Ltd. (the "China Operations"), to AIC Investments Limited, a Hong
Kong company ("AIC"), in an all-cash transaction valued at $2.1
Million. The consummation of this transaction is subject to a
number of conditions, including, but not limited to, completion of
due diligence by AIC, the negotiation and execution of a definitive
purchase agreement, third party governmental and regulatory
consents, approval of the board of directors from the Company and
AIC, shareholder approval of the Company and approval from holders
of senior secured debt of the Company.
Sebastian Giordano, Interim Chief Executive Officer, commented,
"While we value our long-standing relationship with our joint
venture partner, we are very pleased to enter into this LOI to sell
our position in our China Operations. We expect that this
divestiture will net the Company approximately $1.8 million in cash
upon closing. Together with the expected sale of our Seattle
operations, these transactions would provide the Company with
almost $4 million in working capital. As part of our ongoing
restructuring, management has aggressively pursued monetizing
certain of its non-core assets in an effort to provide additional
working capital necessary for bolstering our profitable Suisun City
contracting operation and for fueling the growth of our BTX Trader,
LLC line of business. We remain focused on this new initiative and
are encouraged by the growth we are witnessing in the digital
currency industry as its global acceptance continues to
expand."
About WPCS International Incorporated WPCS operates in two
business segments including: (1) providing communications
infrastructure contracting services to the public services,
healthcare, energy and corporate enterprise markets worldwide; and
(2) developing a Bitcoin trading platform. For more information,
please visit www.wpcs.com and www.btxtrader.com.
Statements about the company's future expectations,
including future 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: Alliance Advisors, LLC Valter Pinto PH: (914)
669-0222 Email Contact
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