ADDvantage Technologies Signs Agreements to Sell Properties in Sedalia, Missouri and Warminster, Pennsylvania
March 29 2019 - 8:30AM
ADDvantage Technologies Group, Inc. (NASDAQ: AEY),
today announced it has signed agreements to sell its facilities
located in Sedalia, Missouri and Warminster, Pennsylvania for a
total of $2.1 million to David Chymiak, LLC, a company controlled
by David Chymiak, the Company’s Chief Technology Officer, Board
member and a substantial shareholder. Selling these two facilities
advances the Company’s strategy to divest its Cable TV segment and
focus exclusively on growing its Telco segment.
The Sedalia, MO facility sale, which closed
yesterday, was for $1.35 million in cash, with a 10 year leaseback
of $10,687.50 per month. The sale of the Warminster, PA facility
will be for $725,000 with a 10 year leaseback of $5,739.58 per
month and is expected to close with the next few weeks. The
Warminster sale will be paid 80% in cash upon closing, with the
remainder due at the earlier of either the closing of the Cable TV
segment sale or six months. The proceeds from both sales will be
credited to the purchase price and down payment required under the
Stock Purchase Agreement relating to the sale of Cable TV,
contingent upon the shareholders vote in favor of the sale of the
Cable TV segment, which is anticipated to occur in the third fiscal
quarter of 2019.
The facility in Sedalia, Missouri houses the
Company’s ComTech Services business and consists of land, an
office, a warehouse and service center, totaling approximately
60,300 square feet. The Warminster, Pennsylvania facility houses
the Company’s NCS Industries business and consists of an office and
warehouse and service center of approximately 12,000 square
feet.
“These agreements follow the sale of our
property in Broken Arrow, Oklahoma, in November 2018,” Joe Hart,
President and CEO of ADDvantage Technologies, said. “Signing
agreements to sell two more of our properties advances our strategy
to divest the Cable TV segment and will help us with our cash flow
needs as we integrate Fulton Technologies and continue to execute
on our growth strategies for Nave Communications and Triton Datacom
in the Telco segment. We look forward to making continued progress
executing against our plans to build a stronger, more efficient
foundation to support revenue growth and financial stability.”
About ADDvantage Technologies Group,
Inc.ADDvantage Technologies Group, Inc. (NASDAQ: AEY)
supplies the cable television (Cable TV) and telecommunications
industries with a comprehensive line of new and used
system-critical network equipment and hardware from a broad range
of leading manufacturers. The equipment and hardware ADDvantage
sells is used to acquire, distribute, and protect the
communications signals carried on fiber optic, coaxial cable and
wireless distribution systems, including television programming,
high-speed data (Internet) and telephony. Through the acquisition
of Fulton, the Company will provide turn-key wireless
infrastructure services, such as the installation and
decommissioning of equipment on cell sites, for wireless carriers,
national integrators, and equipment manufacturers supporting the
wireless carriers. In addition, ADDvantage operates a national
network of technical repair centers focused primarily on Cable TV
equipment and recycles surplus and obsolete Cable TV and
telecommunications equipment.
ADDvantage operates through its subsidiaries,
Tulsat, Tulsat-Atlanta, Tulsat-Texas, NCS Industries, ComTech
Services, Nave Communications, Triton Datacom, and Fulton
Technologies. For more information, please visit the corporate web
site at www.addvantagetechnologies.com.
The information in this announcement may include
forward-looking statements. All statements, other than
statements of historical facts, which address activities, events or
developments that the Company expects or anticipates will or may
occur in the future, are forward-looking statements. These
statements are subject to risks and uncertainties, which could
cause actual results and developments to differ materially from
these statements. A complete discussion of these risks and
uncertainties is contained in the Company’s reports and documents
filed from time to time with the Securities and Exchange
Commission.
For further information |
KCSA Strategic Communications |
Company Contact: |
Elizabeth Barker |
Scott Francis (918) 251-9121 |
(212) 896-1203 |
ebarker@kcsa.com |
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