MONTVALE, N.J., Jan. 2, 2018 /PRNewswire/ -- Micronet Enertec
Technologies, Inc. (NASDAQCM: MICT), (the "Company"), announced
today that it has entered into a definitive agreement with Coolisys
Technologies, Inc., a subsidiary of DPW Holdings, Inc. (NYSE
American: DPW), to sell its wholly owned subsidiary, Enertec
Systems 2001 Ltd. Pursuant to the terms of the agreement, Coolisys
will pay the Company $5,250,000 in
cash upon closing (of which 10% will be held in escrow for up to 14
months after the Closing to satisfy certain potential
indemnification claims) and assume $4,000,000 in Enertec bank debt, paying
effectively a total of $9,250,000 for
all of Enertec's assets and liabilities. The transaction is
scheduled to close the later of 60 days as of signing or 15 days
after delivery of Enertec System's audited financial
statements.
"We are extremely excited to enter into this agreement, which
strongly supports and fully aligns with our roadmap to increase the
value of our Company by focusing all our resources on the MRM
space. As the second phase of the Electronic Logging Device (ELD)
mandate is now in effect, we believe 2018 will produce an even
greater market demand, which we believe may increase the
revenues and profitability of our MRM business in the coming
years," said David Lucatz, Chief Executive Officer of Micronet
Enertec Technologies.
"This transaction fortifies our balance sheet by increasing our
cash position and significantly reducing debt, while improving our
income statement by eliminating all General and Administrative
costs associated with Enertec. In addition, we believe our improved
cash position will enable us to expand our MRM offerings,"
continued David Lucatz.
"The sale of Enertec to Coolisys empowers the Company to grow
its MRM business more aggressively both organically and through
acquisition. As our MRM revenues continue to increase each quarter,
we aim to use this momentum and further invest all our focus and
efforts to become a leader in the MRM space," Lucatz added.
About Micronet Enertec Technologies, Inc.
Micronet Enertec Technologies, Inc. (NASDAQCM: MICT) provides
high tech solutions for severe environments and the battlefield,
including missile defense technologies for Aerospace & Defense
and rugged mobile devices for the growing commercial Mobile
Resource Management (MRM) market. MICT designs, develops,
manufactures and supplies customized military computer-based
systems, simulators, automatic test equipment and electronic
instruments, addressing a multi-billion-dollar defense industry.
Solutions and systems are integrated into critical systems such as
command and control, missile fire control, maintenance of military
aircraft and missiles for the Israeli Air Force, Israeli Navy and
by foreign defense entities. MICT's MRM division develops,
manufactures and provides mobile computing platforms for the
multibillion dollar mobile logistics management market in the U.S.,
Europe and Israel. American-manufactured systems are
designed for outdoor and challenging work environments in trucking,
distribution, logistics, public safety and construction.
Forward-looking Statements
This press release contains express or implied forward-looking
statements within the Private Securities Litigation Reform Act of
1995 and other U.S. Federal securities laws. These forward-looking
statements include, but are not limited to, those statements
regarding the expected closing of the sale of Enertec to Coolisys,
the Company's belief that 2018 will produce greater MRM market
demand that may increase the revenues and profitability of the
Company's MRM division in the coming years, the Company's intention
to focus its resources on the MRM division and markets and increase
its MRM offerings and, as a result of the sale of Enertec to
Coolysis, grow its MRM business more aggressively both organically
and through acquisition in an effort. to become a leader in the MRM
space. Such forward-looking statements and their implications
involve known and unknown risks, uncertainties and other factors
that may cause actual results or performance to differ materially
from those projected. The forward-looking statements contained in
this press release are subject to other risks and uncertainties,
including those discussed in the "Risk Factors" section and
elsewhere in the Company's annual report on Form 10-K for the year
ended December 31, 2016 and in
subsequent filings with the Securities and Exchange Commission.
Except as otherwise required by law, the Company is under no
obligation to (and expressly disclaims any such obligation to)
update or alter its forward-looking statements whether as a result
of new information, future events or otherwise.
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SOURCE Micronet Enertec Technologies, Inc.