Business
Acquisition of Assets from InkSure Technologies
Acquisition of Assets from InkSure Technologies.
About this update from Spectra Systems Corporation
[{"type":"text","content":"\n \nRNS Number : 4838P Spectra Systems Corporation. 02 October 2013 \n \n\nSpectra Systems Corporation\n(\"The Company\" or \"Spectra\")\nAsset Purchase Agreement Signed for Acquisition of Assets from\n InkSure Technologies Inc. (OTCBB: INKS) (\"Inksure\")\nSpectra Systems Corporation, a leader in machine-readable high speed banknote authentication, today announces that on 1 October 2013, it entered into an Asset Purchase Agreement with Inksure Technologies Inc. (OTCBB:INKS) to acquire substantially all of Inksure's brand protection and tax stamp authentication assets, including importantly its long-standing customer relationships and authentication technology. The consideration for the assets is approximately $1M plus the book value of the inventory and 50% of the book value of its receivables (estimated in aggregate at less than $0.5M), which is payable in cash upon completion, with deferred consideration (worth up to $185,000) dependent upon achieving certain commercial milestones. \nSpectra will incorporate the Inksure assets within its existing business and is not expecting any incremental hires to support the increased revenue. Inksure's gross margins have historically been approximately 50%. \nThe transaction is subject to various closing conditions, including Inksure stockholder approval and the approval of the Israeli Office of the Chief Scientist to the transfer of Inksure's Intellectual Property. The closing date of the transaction is anticipated to be in December 2013.\nInksure develops, markets and sells customized authentication solutions designed to enhance the security of documents and branded products, to meet the growing demand for protection from counterfeiting. In this context, \"counterfeit items\" are imitation items that are offered as genuine with the intent to deceive or defraud. Inksure's technology is applied to consumer items and high-value documents every month using a proprietary verification system that is available on, among other things, most smart phones.\nInksure had $1.1M in revenue for the year ended 31 December 2012 with a pre-tax net loss of ($0.85M) from continuing operations and gross assets at that date of $1.2M.\nCommenting, Nabil Lawandy, CEO of Spectra Systems Corporation, said:\n\"The expansion of Spectra's business beyond physical ...