Key Developments For Meade Instruments Corp.
Meade Instruments Corp. (MEAD.O) (Consolidated Issue listed on NASDAQ Capital Market)
Meade Instruments Corp. Comments On Q3 2010 Outlook
Meade Instruments Corp. announced that it does not expect revenues or results from operations in third quarter of 2010 to be significantly higher than the second quarter of 2010.
Meade Instruments Corp. Announces Chief Financial Officer Change
Meade Instruments Corp. announced the resignation of Paul Ross, Senior Vice President and Chief Financial Officer. At the same time, the Company announced his successor, John Elwood. Mr. Ross will continue in full time active service to the Company until April 1, 2009.
Meade Instruments Corp. Obtains New $10 Million Credit Facility
Meade Instruments Corp. announced that it has entered into an agreement with First Capital LLC for a three year, $10 million credit facility. The new facility replaces the existing facility with Bank of America, N.A. that was set to expire in September 2009. The new facility consists of a factoring arrangement for the Company's receivables with up to an 80% advance rate and a secured credit line tied to the Company's finished goods inventory of up to $3 million of available credit, subject to an overall credit limit of $10 million. The interest rate for advances against the facility will initially be set at LIBOR plus 5.5%, subject to a LIBOR floor of 2.25%. The agreement also sets forth unused line fees, minimum factoring commissions, early termination fees and other customary terms and conditions.
Meade Instruments Corp. Announces Resignation Of Steven Muellner As President And CEO
Meade Instruments Corp. announced that Steven Muellner has resigned from his position as President and Chief Executive Officer (CEO) and as a Director of the Company in order to pursue other interests. Steven Murdock, a Director of the Company, has been appointed to the position of Chief Executive Officer of the Company to replace Mr. Muellner.
Meade Instruments Corp. Announces Sale of Meade Europe Operations For Gross Cash Proceeds of USD12.4 Million; Completes Formal Review of Strategic Alternatives
Meade Instruments Corp. announced that it has signed and closed an agreement to sell its European subsidiary (known as Meade Europe) to a European management led buyout group, Bresser GmbH, for gross cash proceeds of EUR 9.4 million (or approximately USD12.4 million). Meade Europe distributes the Company's products and also sells optical products under the Bresser brand name, which is primarily recognized in Europe. Meade also signed an exclusive distribution agreement setting terms for Meade Europe to continue to purchase product from the Company and distribute the Company's Meade and Coronado branded products throughout Europe. In conjunction with the divestiture, the Company also announced that it has completed its formal review of strategic alternatives and has disbanded the Strategic Alternatives Committee of the Board of Directors. In connection with this sale, the Company also entered into a Limited Consent Agreement with its primary lender, Bank of America, N.A., which released the lender's interest in the collateral sold. As of the closing, the Company has no short or long term debt on its balance sheet.
