Rutter Closes Sale of VDR Business
May 30, 2011/CNW/: Rutter Inc. (TSX: RUT) today announced it has concluded the necessary agreements and closed the sale of its Voyage Data Recorder (“VDR”) business to NetWave Systems B.V. With the cash proceeds of $2,448,000 applied against outstanding Term A debt as well as proceeds from the previously announced sale of the Consulting Engineering business, expected to close this week, and existing cash, the Company expects to retire its Term A loan prior to the August 31, 2011 maturity date.
In commenting on the sale to NetWave, Fraser Edison, President and CEO of Rutter Inc., noted “NetWave is a company known to us both as a competitor in the VDR market and as a supplier, providing us with the “Final Recording Medium” capsule that is an integral part of the VDR product. We have always had a good working relationship with NetWave and in concluding the sale; both parties have worked hard to ensure there will be a smooth transition and minimal disruption to our former customers and dealer network.”
Mr. Edison also noted, “We believe the steps taken in the past eight months to dispose of the VDR product line and the Engineering business, in addition to allowing the Company to address debt maturing in August 2011, are further positive steps in refocusing the organization. We continue to work to establish a stronger market presence with our radar products and are looking for opportunities to expand our outsource manufacturing capabilities and market presence in Canada.”
About Rutter Inc. – Rutter is an enterprise focused on providing innovative technologies and engineering solutions. Rutter’s global network supplies technologies to improve efficiency and safety in the marine, defense, transportation, oil and gas sectors from its headquarters in the Province of Newfoundland and Labrador.. For more information go to: http://www.rutter.ca
This press release may contain forward-looking statements that involve risks and uncertainties. These statements reflect current expectations and are subject to a number of risks and uncertainties including but not limited to, change in technology and general market conditions. Due to the many risks and uncertainties, Rutter Inc. cannot assure that forward-looking statements that may be contained in this press release will be realized.
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