Business
Pulse Data announces letter of intent to sell Terrapoint
Pulse Data announces letter of intent to sell Terrapoint.
About this update from Pulse Seismic Inc.
[{"type":"text","content":"\n\n\n\nTSX: PSD\n\n\nCALGARY, Sept. 5 /CNW/ - Pulse Data Inc. ("Pulse" or the "Company")\nannounces that it has signed a non-binding letter of intent to sell the assets\nof its Terrapoint business unit to a management-led group of Terrapoint.\n\n\nThe letter of intent provides a scheduled closing date of September 28,\n2007. The transaction is subject to a number of conditions, including due\ndiligence, financing and execution of a formal purchase and sale agreement.\n\n\nThe letter of intent provides an exclusive period for negotiations until\nSeptember 17, 2007.\n\n\nTerrapoint is a non-core business of Pulse that in March 2007 the Company\ndetermined should be subjected to a review of strategic alternatives to\nmaximize shareholder value for Pulse. The board of directors of Pulse regarded\nthe disposition of Terrapoint as a functioning business as the best means of\naccomplishing this objective. The letter of intent announced today would do\nso, enabling an independent Terrapoint to continue as a leader in the LiDAR\nsurveying industry.\n\n\nThe Board of Directors and management of Pulse are committed to a\nbusiness plan focused solely on the Company's core seismic data library\nbusiness. Upon completion of the transaction, Pulse will have a total of\napproximately 25 employees and expects to achieve a significant reduction in\ngeneral and administrative expenses. Management expects that Pulse will be\nable to continue growing its seismic data library business without any\nsignificant increase in the number of employees or general and administrative\nexpenses.\n\n\nDisclaimer: Certain information contained herein may constitute\nforward-looking statements under applicable securities laws. Such statements\nare subject to known or unknown risks and uncertainties that may cause actual\nresults to differ materially from those anticipated or implied in the\nforward-looking statements. Investors are encouraged to review the "Risk\nFactors" section of the Management's Discussion and Analysis in the Company's\nmost recent Annual Report and interim reports for a discussion of risks that\ncould affect the Company's operations and financial results. Forward-looking\nstatements are based upon management's assumptions, expectations and estimates\nat the time that such statements are made. Pulse does not upda...