Astrotech Receives $6.1 Million Indemnity Holdback from the Sale of its Astrotech Space Operations Business Unit in August 2014
March 01 2016 - 07:05AM
Business Wire
Total Consideration Amounts to $61.0
million
Astrotech Corporation (NASDAQ:ASTC) received an indemnity
payment of $6.1 million on February 25, 2016, which was held in
escrow until the 18-month anniversary of the sale of its Astrotech
Space Operations (ASO) business unit to a wholly-owned subsidiary
of Lockheed Martin Corporation in August 2014. As of February 25,
2016, Astrotech received a total of $61 million for the sale of the
ASO business. No claims were asserted against the indemnity escrow
account, and all monies held in escrow related to the sale by
Astrotech of the ASO business have been paid to Astrotech.
“This payment is the final installment of the sale of ASO and
was a holdback required by the buyer should any unforeseen charges
and expenses be identified after the conclusion of the sale. Both
Astrotech and Lockheed Martin have worked very diligently and
successfully in handing-over the operations and accounting of the
ASO business unit, and this payment represents a very smooth
transition and a satisfied customer,” stated Thomas B. Pickens III,
Chairman and Chief Executive Officer of Astrotech Corporation. “We
have now redefined Astrotech as a business accelerator that is
successfully identifying and monetizing opportunities. Our other
business units are on-track in both their value development and
monetization strategies.
“1st Detect is redefining the chemical detection marketplace by
improving the performance of explosive and chemical weapon
detection instruments while improving the throughput and efficiency
of industrial processing. 1st Detect announced last year being
selected under the JPM NBC CA (Joint Program Manager for Nuclear,
Biological and Chemical Contamination Avoidance) program with
Battelle. We are currently in the development cycle of this program
and continue to meet all deliverable and performance
requirements.
“Astral Images is commercializing identified government funded
satellite image correction technologies and, in March 2015, we
acquired film correction software first developed by IBM and Kodak.
Astral Images recently completed a contract with a large
post-production house and is in discussions with additional leading
studios and museum archives. Additionally, Astral is now finalizing
the development of our new high dynamic range technology that
inexpensively delivers a digital to HDR standard recently published
by the Ultra High Definition Alliance.
“The Astrogenetix unit continues to pursue an investigational
new drug application with the Food and Drug Administration for
Salmonella in conjunction with NASA,” Pickens concluded.
About Astrotech Corporation
Astrotech Corporation (NASDAQ:ASTC) identifies and
commercializes emerging disruptive technologies through its closely
held subsidiaries. Management sources investment opportunities from
various government laboratories, agencies, universities, and
corporations, as well as through its own internal research. Sourced
from Oak Ridge Laboratory’s chemical analyzer research,
1st Detect develops, manufactures, and sells
chemical analyzers that streamline processes for industrial use in
the airport security, food and beverage, semiconductor,
pharmaceutical, research and environmental markets, and the
military. Sourced from decades of image research from the
laboratories of IBM and Kodak combined with classified satellite
technology from government laboratories, Astral Images sells
film to digital image enhancement, defect removal and color
correction software, and post processing services providing
economically feasible conversion of television and feature 35mm and
16mm films to the new 4K ultra-high definition (UHD), high-dynamic
range (HDR) format necessary for the new generation of digital
distribution. Sourced from NASA’s extensive microgravity research,
Astrogenetix is applying a fast-track on-orbit discovery
platform using the International Space Station to develop vaccines
and other therapeutics. Demonstrating its entrepreneurial strategy,
Astrotech management sold its state-of-the-art satellite servicing
operations to Lockheed Martin in August 2014. Astrotech has
operations throughout Texas and is headquartered in Austin. For
information, please visit www.astrotechcorp.com.
This press release contains forward-looking statements that are
made pursuant to the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks, trends, and uncertainties that
could cause actual results to be materially different from the
forward-looking statement. These factors include, but are not
limited to, whether we can successfully develop our proprietary
technologies and whether the market will accept our products and
services, as well as other risk factors and business considerations
described in the Company’s Securities and Exchange Commission
filings including the annual report on Form 10-K. Any
forward-looking statements in this document should be evaluated in
light of these important risk factors. The Company assumes no
obligation to update these forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20160301005773/en/
Company ContactAstrotech CorporationEric Stober,
512-485-9530Chief Financial OfficerorInvestor Relations
ContactLHACathy Mattison and Kirsten Chapman,
415-433-3777ir@astrotechcorp.com
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