MINNETONKA, Minn., Jan. 30,
2023 /PRNewswire/ -- Electro-Sensors, Inc. (Nasdaq:
ELSE) and privately held Mobile X Global, Inc. announced today that
the two companies have terminated the definitive merger agreement
the parties entered into on June 10,
2022.
A condition to closing of the merger transaction was the
consummation of an equity financing with minimum gross proceeds of
$20.0 million, which the parties
anticipated would be a PIPE investment (private investment in
public equity). The financing necessary to consummate the merger
was pursued but is not available due to difficult conditions in the
financial markets, including the markets for PIPE investments.
Electro-Sensors, Inc. also announced that effective following
the termination of the merger agreement, the Electro-Sensors board
established a board special committee consisting of Chairman
Joseph Marino, President
David Klenk, and Audit Committee
Chair Scott Gabbard, and authorized
this committee to explore and pursue business development and other
strategic alternatives for Electro-Sensors.
Electro-Sensors, Inc.
Electro-Sensors, Inc. is an industry leading designer and
manufacturer of rugged and reliable machine monitoring sensors and
wireless/wired hazard monitoring systems applied across multiple
industries and applications. These products improve processes by
protecting people, safeguarding systems, reducing downtime, and
preventing waste. Electro-Sensors is proud to be an ISO9001:2015
quality certified company and is committed to providing excellent
customer service and technical support. Founded in 1968 and located
in Minnetonka, Minnesota,
Electro-Sensors provides its loyal customers with reliable products
that improve safety and help plants operate with greater
efficiency, productivity, and control.
Cautionary Statement Regarding Forward Looking
Statements
From time to time, in reports filed with the Securities and
Exchange Commission, in press releases, and in other communications
to shareholders or the investing public, Electro-Sensors, Inc. may
make forward-looking statements concerning possible or anticipated
future financial performance, business activities or plans that
include the words "believes," "expects," "anticipates," "intends"
or similar expressions. For these forward-looking statements,
Electro-Sensors, Inc. claims the protection of the safe harbor for
forward-looking statements contained in federal securities laws.
These forward-looking statements are subject to a number of
factors, risks and uncertainties, including those disclosed in our
periodic filings with the SEC that could cause actual performance,
activities or plans after the date the statements are made to
differ significantly from those indicated in the forward-looking
statements. For a list of these factors, see the section entitled
"Forward-Looking Statements" in the ELSE Annual Report on Form 10-K
for the year ended December 31, 2021
and any updates in subsequent filings on Form 10-Q or Form 8-K
filed under the Securities Exchange Act of 1934.
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SOURCE Electro-Sensors, Inc.