Qumu Receives $9.7 Million in Cash from Sale of BriefCam Stock
July 18 2018 - 9:07AM
Business Wire
Company will use funds to pay down 60% of current debt with
no pre-payment penalty
Qumu (NASDAQ: QUMU), the leading provider of best-in-class video
technology for the enterprise, received approximately $9,678,000 in
cash on July 6th of 2018 from the sale of its stake in BriefCam
Ltd., a provider of security and intelligence video review software
recently acquired by Canon Inc. Today, Qumu announced it will use
$6.5 million of the proceeds to pay down its current debt facility
with ESW Capital, LLC (through its ESW Holdings, Inc. subsidiary),
with no pre-payment penalty. The principal payment will reduce
annualized interest expense by approximately $642,000 per year,
excluding amortization of debt issuance costs.
“The sale of our BriefCam investment has provided Qumu with an
excellent return,” said Vern Hanzlik, President and CEO of Qumu.
“Qumu has a stronger balance sheet with significantly reduced debt
and the working capital to invest in our growth. We look forward to
putting these funds to work as our strategy continues to build
momentum.”
The company expects to incur approximately $40,000 in federal
and state taxes on the gain, resulting in estimated net proceeds of
approximately $9,638,000. On or before August 1, 2018, Qumu will
pay down the principal balance of its current debt facility by 60%
or $6 million, leaving $4.0 million remaining. The Company will
also pay $500,000 in accrued interest on the principal amount
repaid. Immediately following the payment, Qumu will have
approximately $8 million in working capital on its balance sheet.
And as noted previously, the company will incur no penalties for
this or future pre-payments with proceeds from the BriefCam
sale, as part of its loan agreement with ESW.
About Qumu Corporation
Qumu (Nasdaq: QUMU) is the leading provider of best-in-class
tools to create, manage, secure, distribute and measure the success
of live and on-demand video for the enterprise. Backed by the most
trusted and experienced team in the industry, the Qumu platform
enables global organizations to drive employee engagement, increase
access to video, and modernize the workplace by providing a more
efficient and effective way to share knowledge.
Forward-Looking Statements
This press release contains forward-looking statements
concerning the expected tax effects of the Company’s disposition of
its investment in BriefCam and the timing of the Company’s
prepayment of the term loan with ESW Holdings, Inc. Forward-looking
statements generally may be identified by the use of
forward-looking terms such as “may,” “will,” “expects,” “believes,”
“anticipates,” “plans,” “estimates,” or the negative of such terms
or other variations on such terms or comparable terminology. These
forward-looking statements are subject to risks and uncertainties
that may cause actual results to differ materially from those
indicated in the forward-looking statements. Such risks and
uncertainties include, but are not limited to, the possibility that
the tax effects will be different than expected resulting in lower
net proceeds to the Company than expected and the possibility that
the timing of prepayment may change. These factors are not intended
to be an all-encompassing list of risks and uncertainties. The
factors described in the context of such forward-looking statements
in this release could cause actual results to differ materially
from those expressed in or implied by such forward-looking
statements. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as at the date
hereof. The Company expressly disclaims any obligation to update or
correct these forward-looking statements except as required by
law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180718005483/en/
Qumu Investor ContactDave Ristow, +1 612-638-9045Chief
Financial OfficerQumu CorporationDave.Ristow@qumu.com
Qumu (NASDAQ:QUMU)
Historical Stock Chart
From Aug 2024 to Sep 2024
Qumu (NASDAQ:QUMU)
Historical Stock Chart
From Sep 2023 to Sep 2024