Pure Technologies Ltd. Announces Sale of Subsidiary
Pure Technologies Ltd., TSX-V: PUR, ( Pure ) announced today that it has entered into a binding agreement to sell its video surveillance subsidiary, PureTech Systems Inc. ( PureTech ) to a U.S. company ( the Purchaser ).
Under the terms of the agreement, the Purchaser has agreed to purchase 100% of the stock of PureTech for cash consideration of US$3.25 million. The purchase is subject to customary closing conditions and is expected to close on October 1st, 2007.
Pure is expected to realize a gain on the sale in excess for US$1 million in its Q4 results. Subsequent to the sale, annualized marketing, research and development, general and administrative expenses are expected to decrease by more than $2 million for the consolidated entity.
Commenting on the sale, Jamie Paulson, Chairman of Pure Technologies Ltd., said: We are pleased to announce the sale of PureTech Systems Inc. The Purchaser is a leading developer, manufacturer, marketer and integrator of advanced sensing technologies, products and solutions whose principal market is Homeland Security. This transaction will provide PureTech with the financial, management and marketing support to allow it achieve its goal of becoming a major player in the emerging field of video analytics, while allowing Pure Technologies to focus on its core business of developing and selling environmental technologies and solutions for infrastructure management.