Monday, broadband wireless access solutions provider SR Telecom Inc. (SRX.TO) said it signed an asset purchase agreement, or APA, with privately held Groupe Lagasse for an aggregate consideration of $6.05 million, payable at closing and on the assumption of certain stated liabilities.
Under the APA deal, the Sherbrooke, Quebec-based Groupe Lagasse will acquire the majority of SR Telecom's assets, which includes its WiMAX Forum-certified symmetryMX product line. Groupe Lagasse will take over symmetryMX product line's brand, trademarks, intellectual property, patents, inventories, and equipments. SR Telecom shareholders, however, are not expected to receive any value out of the proceeds of such a sale.
The transaction, which is subject to certain closing conditions and court approval, is expected to close on or before April 4, 2008.
SR Telecom stated that once completed, the transaction will provide product and service continuity for SR Telecom's worldwide customers, required financial stability to fully resume normal operations, reestablish SR Telecom's ability to thrive in the global WiMAX market, and protect high-technology jobs in Montreal.
On November 19, 2007, SR Telecom had filed for creditor protection under the CCAA, and on February 29, 2008, had obtained an order from the Quebec Superior Court to extend the period of the Court-ordered stay of proceedings against SR Telecom under the CCAA to May 2.
Commenting on the agreement, Louis Lagasse, chairman of Groupe Lagasse, said, This acquisition allows us to leverage the synergies between our current organization and SR Telecom to immediately enter the rapidly-growing global WiMAX market as a major player with a feature-rich, field-proven product line.
Groupe Lagasse is an international holding company with manufacturing, products, and services business units that deliver leading edge communications solutions for the private and public sectors. Sales in 2007 exceeded C$200 million.
SRX.TO closed Thursday's regular trading on the TSX at C$0.01, unchanged from previous closed, with 591, 200 shares.
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