Key Developments For Wegener Corporation
Wegener Corporation (WGNR.O) (Consolidated Issue listed on NASDAQ Capital Market)
Wegener Corporation Announces Senior Management Changes
Wegener Corporation announced that Robert Placek has chosen to step down as Chief Executive Officer (CEO) of Wegener Corporation but will remain as Chairman of Wegener Corporation's and WEGENER's Boards of Directors. C. Troy Woodbury Jr., current Chief Financial Officer (CFO) of Wegener Corporation and WEGENER, has been unanimously named CEO of Wegener Corporation by Wegener Corporation's Board of Directors and CEO of WEGENER after having been nominated for the positions by Mr. Placek. James T. Traicoff has been appointed CFO of Wegener Corporation and WEGENER. Mr. Woodbury's and Mr. Traicoff's appointments are effective immediately. Ned L. Mountain is leaving WEGENER in pursuit of other business interests and has resigned from the Wegener Corporation Board of Directors.
Wegener Corporation Updates Status Of Sencore LOI and Bank Financing
Wegener Corporation announced that the exclusivity period in its Letter of Intent (LOI) with Sencore, Inc. expired on September 13, 2009 and that Wegener Corporation has terminated the LOI. Additionally, WEGENER announced that an amendment has been added to its loan agreement with its Senior Lender. The exclusivity period set forth in the non-binding Letter of Intent between Wegener Corporation and Sencore, Inc. expired earlier this week. The Wegener Corporation Board of Directors unanimously voted to terminate the Letter of Intent and Sencore was officially notified of the termination. Upon Wegener Corporation entering into the LOI with Sencore on July 16, 2009, WEGENER began discussions with its Senior Lender about extending its line of credit agreement with the bank and receiving over advances designed to enable WEGENER to finance its operations until a closing of the merger contemplated by the LOI. The amendment extends the term of the line of credit agreement through November 30, 2009. The amendment allows for over advances up to $500,000 beyond the agreed upon collateral formula, which is primarily based on eligible accounts receivable and inventory. The over advances are only available if a merger agreement or asset purchase agreement satisfactory to the bank is executed by October 15, 2009. The maximum credit line is set at $4,000,000, which includes any over advances, and can be subject to reserves and increased or reduced by the bank in its sole discretion.
Wegener Corporation Receives Order From Kanal 75 For Compel Network Control System
Wegener Corporation announced that Kanal 75, a European distributor of ATG horse racing, purchased a WEGENER Compel network control system to enhance network operations and capabilities. Kanal 75 is currently using WEGENER network control and video receiver equipment to manage live video feeds over satellite to betting shops and video headends in 13 European countries. They also provide racing graphics, video production, print media, teletext information and off-site video vans. It is Kanal 75's long-term plan to leverage their existing content creation capabilities, graphics and television studios, Pan European distribution network and network planning expertise to offer new services to clients outside of the horse racing industry.
Wegener Corporation Receives Order From Educational Media Foundation For Additional iPump Audio Media Servers
Wegener Corporation announced that Educational Media Foundation (EMF) has ordered more than 100 iPump 6420 audio media servers for ongoing expansion and replacement of its file-based and live radio broadcasting networks. In addition, EMF has ordered MP3 audio support licenses for its iPump 6400 and iPump 6420 servers, which will be used to implement advertisement and programming playout verification, monitor station broadcasts, and backhaul specific programs for archiving.
Sencore, Inc. Enters Into Letter of Intent Regarding Acquisition of Wegener Corporation
Sencore, Inc. and Wegener Corporation announced that they have entered into a non binding letter of intent regarding a possible acquisition of Wegener by Sencore. The letter of intent contemplates an acquisition by Sencore of all of the outstanding shares of Wegener Corporation's common stock for an aggregate cash consideration equal to $6.0 million on a cash free, debt free basis. This purchase price of $6.0 million assumes that Wegener Corporation is free of all debt, taxes payable, accrued transaction expenses and any amounts due to related parties. Accordingly, the per share consideration to common shareholders would be reduced to reflect any anticipated amounts of these items as of the closing date of the acquisition. In addition, the purchase price also assumes that Wegener Corporation will have an appropriate amount of working capital, as of the closing date of the acquisition. In addition, the purchase price also assumes that Wegener Corporation will have an appropriate amount of working capital, as of the closing date of the acquisition. As part of the letter of intent, Wegener Corporation has made a binding commitment to negotiate exclusively with Sencore for a period of 60 days commencing on the date of the letter of intent and has to pay certain termination fees under certain circumstances. There can be no assurance that these discussions will lead to a transaction between Sencore and Wegener Corporation.
