Micronet Enertec Technologies Inc (NASDAQ:MICT) has entered into a definitive deal with Coolisys Technologies, Inc., to sell its subsidiary unit, Enertec Systems 2001 Ltd. Following the terms of the definitive agreement, Coolisys will reimburse the firm cash of $5.25 million upon closing and assume $4 million in Enertec bank debt, paying a total of $9.25 million for all of Enertec’s liabilities and assets. The transaction is planned to close the later of sixty days as of signing or fifteen days post-delivery of Enertec’s audited financial statements.
David Lucatz, the CEO of Micronet Enertec, expressed that they are extremely thrilled to finalize this deal, which fully aligns with and strongly supports their roadmap to enhance the value of their firm by focusing all their resources on the MRM segment. As the next stage of the Electronic Logging Device mandate is now implemented, they consider 2018 will result in an even increased market demand, which they consider may increase the profitability and revenues of their MRM business in the imminent years.
Lucatz added that this deal strengthens Micronet balance sheet by increasing their cash position and considerably lowering debt, while enhancing their income statement by removing all General and Administrative costs related with Enertec. Moreover, they consider their enhanced cash position will allow them to expand their MRM offerings.
The transaction empowers the firm to advance its MRM business aggressively both through acquisition and organically. As their MRM revenues sustain to increase each quarter, they plan to build on this momentum and also invest all their initiatives and focus to become a pioneer in the MRM segment.
In the last trading session, the stock price of Micronet Enertec jumped more than 21% to close the day at $1.36. The gains came at a share volume of 9,80 million compared to average share volume of 503,598.
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