Avante Logixx Inc. TSX.V: XX OTC: ALXXF “Avante” or the “Company” is pleased to announce that, following the approval by shareholders at the meeting held on May 30, 2022, it has completed the sale of its subsidiary Logixx Security Inc. “Logixx” to SSC Security Services Corp. TSXV: SECU, “SSC” effective June 1, 2022, as previously announced in the Company’s March 30, 2022 press release and its Management Information Circular dated April 28, 2022.
Going forward, the Company intends to focus on in-lane acquisitions to support organic growth, expansion of international service offerings, and the development and deployment of new technologies in Cyber Security, Health, and Advanced AI technologies to capture data around the world that can be used for predictive disaster mitigation for its clients and their assets.
Since March 30, 2022, the Company has implemented operating expense cost savings of $1.6 million, on an annualized basis, the closing of its standalone corporate office, and reductions in staff and vehicle leases. Management will continue efforts toward identifying further expense and lease obligation savings. After receipt of proceeds from the sale of Logixx and full repayment of bank debt, strategic review transaction costs, and recent severance arrangements, the Company will have zero debt and expects to have cash balances of $10 million, which is equivalent to approximately $0.38 per share. The Company also expects to have a positive run-rate Adjusted EBITDA as of the second quarter of its fiscal year ending March 31, 2023.
Upon completion of the sale of Logixx, the Company amended and restated the credit facilities with its bank to provide for a demand-based revolving credit facility of $2 million currently undrawn plus arrangements for corporate visa and cash management requirements.“I am pleased with the progress we have made towards transforming our business over a short period of time and we expect to make further announcements over the coming months,” said Manny Mounouchos, CEO and Board Chair of Avante.News Source: Yahoo Finance