OAKDALE, Minn., Jan. 23, 2017 /PRNewswire/ -- Imation Corp.
("Imation") (NYSE: IMN) today announced that its transaction with
NXSN Acquisition Corp. ("NXSN"), an affiliate of Spear Point
Capital Management LLC ("Spear Point"), pursuant to which all of
the issued and outstanding common stock of Nexsan Corporation
("Nexsan") was sold to NXSN, has closed. Imation's leaders
Bob Fernander, its Interim Chief
Executive Officer, and Geoff
Barrall, its Chief Technology Officer, will continue to run
the Nexsan business as Chief Executive Officer and Chief Technology
Officer of Nexsan, respectively, and will have seats on the new
Nexsan board. The transaction is designed to enhance Nexsan's plans
for both organic and inorganic growth, as Nexsan will be infused
with up to $10 million in fresh
private equity capital. The transaction is a strategic final step
in the restructuring plan of Imation, which received 50% of the
issued and outstanding common stock of NXSN and a $25 million senior secured convertible promissory
note, by providing for third-party investment in the Nexsan
business to enhance Nexsan's growth and support its recent product
developments. This investment provides value for Imation
stockholders by eliminating Imation's need to make this investment
in Nexsan itself while preserving the potential for equity value
upside from Nexsan's ongoing development and market
penetration.
As a result of the deal, Nexsan plans to make additional
investments in sales, marketing and geographic expansion. Nexsan is
continuing its 100 percent channel model worldwide, and will
increase account coverage, including channel assistance and
marketing initiatives in order to drive growth and customer
adoption. Over the last year, Nexsan has stabilized its revenue and
we expect it will continue to grow following the closing of the
transaction.
About Imation
Imation (IMN) is a holding company
involved in asset management. Imation's partially-owned
Nexsan subsidiary is engaged in the global enterprise data storage
business. At the corporate level, Imation continues to seek and
explore new opportunities to enable us to pursue a diverse range of
strategic business opportunities and deploy excess cash.
About Nexsan
Nexsan™ is leading the way in redefining
unified storage. The company has been at the forefront in
developing world-class storage technologies that are focused on the
critical needs of our customers. Nexsan Unity™ is the first
enterprise-class unified storage solution to incorporate secure
file sync and share in a single platform. Nexsan Assureon™ delivers
secure archive storage for the most compliant of industries and our
renowned E-Series is the storage backbone of many data centres
around the world due to its high performance, reliable, high
density storage. Nexsan is headquartered in Campbell, CA. For more information,
please visit: www.nexsan.com.
Nexsan, the Nexsan logo, Connected Data, the Connected Data
logo, Transporter, E-Series, NST, AutoMAID, Assureon and Unity are
trademarks or registered trademarks of Nexsan Corporation. All
other trademarks are property of their respective owners.
About Spear Point
Spear Point is a deep value investor
focused on special situations. Our investment strategy
combines intensive due diligence, an active role in addressing
corporate governance and strategy, and a highly concentrated
portfolio, in order to create superior value in our portfolio
companies.
Trademarks and Tradenames
This press release includes
trademarks and tradenames owned by the company and its
subsidiaries, including "Imation", "Nexsan", "E-Series" and
"UNITY". Solely for convenience, these trademarks or
tradenames appear without the ® or ™ symbols, but such references
are not intended to indicate in any way that the company will not
assert, to the fullest extent, our rights to use these trademarks
and tradenames.
Forward Looking Statements
This press release may
include "forward looking statements" within the meaning of the
"safe harbor" provisions of the United Stated Private Securities
Litigation Reform Act of 1995. Forward-looking statements are not
historical facts, and involve risks and uncertainties that could
cause actual results to differ materially from those expected and
projected. Words such as "expects", "believes", "anticipates",
"intends", "estimates", "seeks" and variations and similar words
and expressions are intended to identify such forward-looking
statements. Such forward-looking statements with respect to the
Nexsan transaction, the Nexsan business and the value of both to
Imation and its stockholders are based on current expectations that
are subject to risks and uncertainties. A number of factors could
cause actual events, performance or results to differ materially
from the events, performance and results discussed in the
forward-looking statements. These factors include, but are not
limited to: (1) the outcome of any legal proceedings that may be
instituted against Imation or others in connection with the Nexsan
transaction; (2) the risk that the transaction disrupts current
plans and operations as a result of the announcement and
consummation thereof; (3) the ability to recognize the anticipated
benefits of the transaction; (4) costs related to the transactions;
(5) changes in applicable laws or regulations; and (6) other risks
and uncertainties indicated from time to time in filings with the
SEC by Imation. Readers are cautioned not to place undue reliance
upon any forward-looking statements, which speak only as of the
date made, and Imation undertakes no obligation to update or revise
any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
law.
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SOURCE Imation Corp.