Feb 22 2008
Implant Sciences Corporation, a leading manufacturer of advanced security products, today further discussed its plans to sell Core Systems, Inc. (“Core”), the Company’s wholly-owned semiconductor subsidiary. With the approval of the Board of Directors, the Company recently made the formal decision to harvest the value it believes has been created in Core since its acquisition in October 2004. To assist the Company in the sales process, Noblemen Holdings, LLC (“Noblemen”) has been hired to be the investment banking advisor. Noblemen is a boutique investment banking firm with specialized expertise in the semiconductor space.
Phillip C. Thomas, CEO and President commented, “In our continuing efforts to focus the Company on our Safety, Security and Defense (SS&D) business, the planned sale of Core meets several of our strategic objectives. Since the acquisition of Core, we have taken steps to grow this semiconductor business unit and consolidate operations in Sunnyvale, California to realize efficiencies and bring a consolidated business unit to the marketplace. Core now presents an attractive acquisition opportunity as a stand-alone business or as an integral component of a strategic buyer. Given our assessment of Core, we believe the time is right to execute on our planned strategy which should maximize our return on this investment and provide us the opportunity to redeploy the cash received to strengthen our balance sheet and provide working capital to move forward with our SS&D initiatives. These initiatives include continued support of our development efforts to introduce new SS&D products and increased investment in our sales efforts to improve sales.
Our balance sheet could be improved not only by the additional working capital provided, but also by the elimination of our convertible preferred stock obligation through cash repayments. The successful sale of Core should move Implant Sciences one step closer to fulfilling its mission of being a focused leader and innovator in the SS&D market.”