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Acorn Energy Completes DSIT Sale; Providing Funding for Focused IoT Wireless Remote Monitoring and Control BusinessWILMINGTON, Del., Feb. 14, 2018 (GLOBE NEWSWIRE) -- Acorn Energy, Inc. (OTCQB:ACFN), announced today that it has completed the sale of its remaining 41.15% interest in DSIT Solutions Ltd. for $5.8 million, before fees and taxes, to an Israeli investor group. Acorn will host a conference call on Thursday, February 15th at 10:00 am ET (details below) to review the transaction and the outlook for the Company. Acorn is now a debt-free focused provider of high growth, wireless remote monitoring and control (IoT) services for critical industrial assets.
Net of estimated expenses, including withholding taxes, and the repayment of existing director loans and amounts due to DSIT, Acorn has approximately $2 million in cash after the DSIT transaction. Acorn could also receive an additional $500,000 in the event that DSIT is successful in securing a multi-million dollar contract related to DSIT's new state-of-the-art fiber-optic monitoring technologies. This amount would be held in escrow for twenty months and could be reduced by any representation or warranty claims by the purchaser group. New State-of-the-Art Fiber-Optic Monitoring Technology Acorn’s sale of its DSIT stake represents one of the final steps in its strategic plan to streamline operating costs and focus its capital and resources on the long-term growth potential of its OmniMetrix business. In addition to pipeline services, OmniMetrix provides wireless remote monitoring and control services for stand-by generators and other critical equipment that are used in cell towers, medical facilities, data centers, public transportation systems and other facilities in North America and globally. Acorn CEO Jan Loeb commented, “The sale of our DSIT stake enables Acorn to repay our director loans and amounts due to DSIT – putting th Company in a debt-free position with approximately $2 million of cash. Given the success we continue to achieve in our OmniMetrix business including projected growth, combined with further cost reductions we have identified and are looking to implement to our overhead, we believe Acorn is now finally positioned to fund itself through to cash-flow breakeven and ultimately to profitability. As a result, Acorn will be better positioned to potentially realize value from the Company’s significant tax loss carryforwards, which were approximately $60 million at December 31, 2016. "Looking forward, we are now able to fully focus our time and resources on enhancing the growth and profitability of our remote monitoring and control business both organically and through potential acquisitions. Historically, more than half of this revenue is made up of high-margin, recurring monitoring services – as most of our remote monitoring contracts renew on expiration. Building off this solid base, we believe OmniMetrix can continue to grow its orders organically at an annualized rate of approximately twenty percent for the foreseeable future. “Additionally, as our business performance allows, we will pursue the further streamlining of our corporate structure and branding in a cost-effective manner. We also have the re-listing of our common stock on Nasdaq as a corporate priority – the timing of which will be driven by our business progress. “Given where the company was just two years ago, I am very proud of what our Board, management and OmniMetrix team have accomplished in eliminating loss-making operations, harvesting valuable but illiquid assets and strengthening our financial position, while advancing the growth potential and technology portfolio of our remote monitoring business. We have delivered on the goals that we set when I joined the company and now find Acorn very well positioned for the future. This is indeed a very exciting time for Acorn and OmniMetrix, and I look forward to speaking with investors on our upcoming call and down the road as we continue to advance the business.” Conference Call Details
About Acorn (www.acornenergy.com) and OmniMetrix (www.omnimetrix.net) Safe Harbor Statement Investor Relations Contacts: |