Implant Sciences Closes on Sale of Assets of Core Systems Subsidiary
Implant Sciences Corporation (NYSE Alternext US: IMX), a supplier
of systems and sensors for the homeland security market and related
industries, today announced that on November 24, 2008, the Company and
its wholly owned subsidiary, C Acquisition Corp. (which operates under
the name Core Systems), closed the previously announced transaction to
sell substantially all of Core Systems’ assets for a purchase price of
$3,000,000 plus the assumption of certain liabilities.
The buyer, an entity newly formed by Core Systems’ general manager and
certain other investors, made cash payments of $1,375,000 prior to and
upon the closing. The balance of the purchase price was paid at the
closing by the buyer’s delivery of a promissory note in the principal
amount of $1,625,000. The promissory note requires the buyer to pay
$125,000 of liabilities retained by the Company on or before November
28, 2008, an additional $500,000 on or before December 24, 2008 and the
remaining principal balance, together with accrued interest, in equal
monthly installments over a period of 60 months commencing February 1,
2009. The note is collateralized by a security interest in all of the
buyer’s Core Systems assets.
"We are pleased to have completed the sale of Core Systems marking the
Company’s total withdrawal from the semiconductor business,” said Glenn
D. Bolduc, Chief Financial Officer of Implant Sciences. "In combination
with previous announcements to withdraw from all medical business
operations by the end of the calendar year, we will have successfully
repositioned the Company as a pure-play in the Security, Safety and
Defense industries. With the distractions of divesting the Company of
its non-strategic operations behind us, we can now channel all of our
energies and resources into the funding and growth of our SS&D business.”
About Implant Sciences
Implant Sciences develops, manufactures and sells sophisticated sensors
and systems for the Security, Safety and Defense (SS&D) industries. The
Company has developed proprietary technologies used in its commercial
portable and bench-top explosive trace detection systems which ship to a
growing number of locations domestically and internationally. For
further details on the Company and its products, please visit the
Company’s website at www.implantsciences.com.
Safe Harbor Statement
This press release contains certain "forward-looking statements,” as
that term is defined in the Private Securities Litigation Reform Act of
1995. Such statements are based on management’s current expectations and
are subject to risks and uncertainties that could cause the Company’s
actual results to differ materially from the forward-looking statements.
Such risks and uncertainties include, but are not limited to, the
Company’s ability to successfully collect on the promissory note issued
by the buyers of Core Systems, the ability to fund and grow the SS&D
business, and other risks and uncertainties described in the Company’s
filings with the Securities and Exchange Commission, including its most
recent Forms 10-K, 10-Q and 8-K.
For further information, you are encouraged to review Implant Sciences’
filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-K, as amended, for the period ended June 30,
2008 and Quarterly Report on Form 10-Q for the period ended September
30, 2008. The Company assumes no obligation to update the information
contained in this press release.
