Destron Fearing Corporation to Be Acquired by Allflex USA, Inc. for $25 Million
Digital Angel Corporation (OTCBB: DIGA), an advanced technology company
in the field of animal identification and emergency identification solutions, announced today that it has entered into a definitive agreement with Allflex USA, Inc. to sell its animal identification business, Destron Fearing Corporation, for a purchase price of $25 million.
The cash deal is subject to the satisfaction of customary closing conditions, including approval by the holders of a majority of the outstanding shares of Digital Angel Corporation. Closing adjustments, payment of debt and accrued liabilities, escrowed funds and the value of assumed liabilities will reduce the proceeds received from this transaction.
"After exploring all available alternatives and reviewing a number of scenarios with AgriCaptial Corporation, an investment bank hired to evaluate the value of the business and advise the Board of Directors on its strategic options, it was determined that selling Destron Fearing was the best solution to maximize the value of the business for Digital Angel's stockholders and provide the best opportunity for Destron Fearing employees, partners, and customers," said Joe Grillo, Chief Executive Officer of Digital Angel Corporation.
Additional information will be available in Form 8-K that Digital Angel will file with the Securities and Exchange commissions within four business days.
A stockholder meeting and vote is expected to be scheduled in June 2011.
About Destron Fearing Corporation and Digital Angel Corporation:
Destron Fearing Corporation is a subsidiary of Digital Angel Corporation
(OTCBB: DIGA), an advanced technology company in the field of animal
identification and emergency identification solutions. Digital Angel
Corporation's products are utilized around the world in such applications as pet identification, using its patented, FDA-approved implantable microchip; livestock identification and herd management using visual and radio frequency identification (RFID) ear tags; and global positioning systems (GPS) search and rescue beacons for army, navy and air force applications worldwide. For further information please visit http://www.destronfearing.com/ and http://www.digitalangel.com/
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