Volt Information Sciences Receives $5 Million in Net Cash as Part of Early Retirement of Note & a Settlement Agreement with N...
01 November 2017 - 2:00PM
Business Wire
Volt Information Sciences, Inc. (“Volt” or the “Company”)
(NYSE-AMERICAN:VISI), an international provider of staffing
services and managed service programs, today announced it has
entered into a settlement agreement with NewNet Communication
Technologies, LLC (“NewNet”) and the Company’s affiliate Volt Delta
Resource Holdings, Inc. (“Volt Delta”).
The settlement related to the Company’s December 2014 sale of
its Computer Systems segment, Volt Delta, to NewNet, a transaction
which generated proceeds of $10.0 million in the form of an
interest-bearing note maturing on December 1, 2018 (“the Note”).
The December 2014 transaction also included a working capital
adjustment and certain indemnity claims which remained outstanding
prior to October 27, 2017.
Under the agreement, NewNet agreed to pay off the Note more than
a year early for $7.5 million. Volt agreed to settle the
outstanding working capital adjustment, receivables under the
transition services agreement, and other indemnity claims for $1.5
million. The net result is the Company received cash from NewNet of
$5 million on October 27, 2017, as well as a $1 million promissory
note maturing no later than January 31, 2018. The Company and
NewNet agreed to a mutual release, relieving all parties of their
obligations and settling minor indemnity claims.
Commenting on the announcement, Michael Dean, Volt’s President
and CEO, said, “We are very pleased to have successfully resolved
all outstanding issues related to the prior sale of Volt Delta.
This settlement has resulted in an immediate net cash inflow of $5
million, further improving Volt’s balance sheet and financial
flexibility.”
Information concerning the completion of this transaction was
filed by Volt today with the Securities and Exchange Commission and
can be obtained at www.sec.gov or the “Investors” section of Volt’s
website at www.volt.com.
About Volt Information Sciences, Inc.
Volt Information Sciences, Inc. is a global provider of staffing
services (traditional time and materials-based as well as
project-based) and managed service programs. Our staffing services
consists of workforce solutions that include providing contingent
workers, personnel recruitment services, and managed services
programs supporting primarily professional administration,
technical, information technology, light-industrial and engineering
positions. Our managed service programs consist of managing the
procurement and on-boarding of contingent workers from multiple
providers. Our complementary businesses offer customized talent,
technology and consulting solutions to a diverse client base. Volt
services global industries including aerospace, automotive, banking
and finance, consumer electronics, information technology,
insurance, life sciences, manufacturing, media and entertainment,
pharmaceutical, software, telecommunications, transportation, and
utilities. For more information, visit www.volt.com.
Forward-Looking Statements
This press release contains forward-looking statements that are
subject to a number of known and unknown risks, including, among
others, general economic, competitive and other business
conditions, the degree and timing of customer utilization and rate
of renewals of contracts with the Company, and the degree of
success of business improvement initiatives that could cause actual
results, performance and achievements to differ materially from
those described or implied in the forward-looking statements.
Information concerning certain of these and other factors that
could cause actual results to differ materially from those in the
forward-looking statements are contained in company reports filed
with the Securities and Exchange Commission. Copies of the
Company’s latest Annual Report on Form 10-K and subsequent
Quarterly Reports on Form 10-Q, as filed with the Securities and
Exchange Commission, are available without charge upon request to
Volt Information Sciences, Inc., 1133 Avenue of the Americas, New
York, New York 10036, Attention: Shareholder Relations,
212-704-7921. These and other SEC filings by the Company are also
available to the public over the Internet at the SEC’s website at
http://www.sec.gov and at the Company’s website at
http://www.volt.com in the Investors section. The Company
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20171101005651/en/
Investor Contacts:Volt Information Sciences,
Inc.voltinvest@volt.comorAddo Investor RelationsLasse Glassen,
424-238-6249lglassen@addoir.com
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