TSX: PSD
CALGARY, Sept. 5 /CNW/ - Pulse Data Inc. ("Pulse" or the "Company") announces that it has signed a non-binding letter of intent to sell the assets of its Terrapoint business unit to a management-led group of Terrapoint.
The letter of intent provides a scheduled closing date of September 28, 2007. The transaction is subject to a number of conditions, including due diligence, financing and execution of a formal purchase and sale agreement.
The letter of intent provides an exclusive period for negotiations until September 17, 2007.
Terrapoint is a non-core business of Pulse that in March 2007 the Company determined should be subjected to a review of strategic alternatives to maximize shareholder value for Pulse. The board of directors of Pulse regarded the disposition of Terrapoint as a functioning business as the best means of accomplishing this objective. The letter of intent announced today would do so, enabling an independent Terrapoint to continue as a leader in the LiDAR surveying industry.
The Board of Directors and management of Pulse are committed to a business plan focused solely on the Company's core seismic data library business. Upon completion of the transaction, Pulse will have a total of approximately 25 employees and expects to achieve a significant reduction in general and administrative expenses. Management expects that Pulse will be able to continue growing its seismic data library business without any significant increase in the number of employees or general and administrative expenses.
Disclaimer: Certain information contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Investors are encouraged to review the "Risk Factors" section of the Management's Discussion and Analysis in the Company's most recent Annual Report and interim reports for a discussion of risks that could affect the Company's operations and financial results. Forward-looking statements are based upon management's assumptions, expectations and estimates at the time that such statements are made. Pulse does not update forward-looking statements should circumstances change or management's assumptions, expectations or estimates change, unless required by law.