Integrated Security (IZZI) executes sale of B&B ARMR division

Posted on: Monday, December 20th, 2010
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Integrated Security Systems, Inc. (OTCBB:IZZI) announced today that the Company has executed an Asset Purchase Agreement for the sale of substantially all of the assets of B&B ARMR to an affiliate of Strait Lane Capital Partners, LLC of Dallas, Texas. In effect, the sale includes all of the accounts receivable, inventory, fixed assets and intellectual property of B&B ARMR, plus its investment in the joint venture, B&B Roadway.

The purchase price of $6 million is to be made up of a cash payment in the amount of $5,550,000 and a promissory note in the original principal amount of $450,000. At the closing, 95 percent of the cash portion of the purchase price will be paid to the Company, subject to certain adjustments, and the remaining five percent will be deposited into escrow. Accordingly, of the cash portion of the proceeds from the sale, $450,000 will be used by the Company to make an equity investment in the buyer’s parent company, B&B Roadway Holdings, LLC, a newly-formed Delaware limited liability company.

Integrated Security’s Board of Directors approved the Asset Sale because it believes it was the strategic alternative most likely to maximize stockholder value. Subsequent to the Asset Sale, the Company will retain the net proceeds of the Asset Sale, but will not be actively conducting any business. The Company will actively seek a merger, acquisition or similar business combination with another company to again be engaged in an active business. In the interim, the Company’s Common Stock will continue to be traded and the Company intends on keeping all of its SEC filings up-to-date.

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Category: OTCBB, Technology Stocks
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