The agreement has been signed with Entrevision Inc. The terms of the agreement provide that the vendors will receive a cash payment of $294,000 and 700,000 Avante common shares (representing $294,000 of shares based on a negotiated share price of $0.42).
“Given the renewed strategy and reorganization into strategic business units, we believe that it would be a better strategic fit to have Architronics wholly owned by Avante. We are confident that we will establish a unified culture across all the business units, increase cross-selling opportunities, reduce overhead, align key executives compensation with this strategy, which will ultimately result in increased revenues and profits,” said Craig Campbell, CEO, Avante Logixx.
As part of the transaction, Architronics’ president, Matt Grossman, will transition from his role to an independent advisor at Avante Logixx.
The transaction closed on July 16, 2018. Avante had acquired a 51% ownership of the shares of Architronics on March 1, 2017.