Dynasil Corporation of America, a developer of sensing, detection and analysis technology for homeland security, medical and industrial applications, today completed the sale of the assets of its X-Ray Florescence (XRF) Lead Paint Detector product line to PROTEC Instrument Corporation, the U.S. subsidiary of its long-time distributor, French firm Laboratories PROTEC S.A.
This transaction is a step in the previously announced strategy to restructure the Company to improve liquidity and pay down bank debt. The consummation of this divestiture resulted in a payment to Santander Bank, N.A., the Company's primary lender of approximately $1.2 million, which reduced the balance of the Company's outstanding indebtedness to Santander to $5.3 million. As previously reported, at September 30, 2012, the Company's indebtedness to Santander was approximately $9.0 million. The Company also has a subordinated $3 million note to Massachusetts Capital Resource Corporation which has not been paid down.
"This divestiture is an important step in our strategy to focus our business and improve our balance sheet," said Peter Sulick, Chairman and CEO of Dynasil. "We are very pleased to consummate the sale of the XRF assets to our long-time strategic partner, Protec. With this acquisition, Protec will be substantially expanding their operations in the U.S. Protec has been the sole distributor of the LPA in France, and, as such, is very familiar with the product."
"With the recent spin off of our tissue sealant technology and now the sale of the XRF assets, Dynasil has reduced outstanding indebtedness while also eliminating cost," continued Mr. Sulick. "While we cannot yet report that we are out of technical default with our creditors, we expect to continue to make near-term progress toward this goal."