- Omni-Lite Industries (TSXV:OML) has entered into a sale-leaseback of its California manufacturing facility and real estate for gross proceeds of approximately US$6.8 million
- As a result of the sale, Omni-Lite Industries will be debt free and can expect net proceeds of US$5.6 million
- Sale-leaseback agreement will allow Omni-Lite Industries to enter 10 year lease with option to extend another 10 years
- Omni-Lite Industries (OML) is up 2.35 per cent at C$0.87 per share at 1:34 EST
Omni-Lite Industries (OML) has entered into a sale-leaseback of its California real estate for gross proceeds of US$6.8 million.
The sale proceeds represent a substantial premium over Omni-Lite Industries’ carrying value of the asset. The agreement is expected to close on December 17, 2021.
As a result of the sale, Omni-Lite Industries is debt-free. The corporation will evaluate capital in order to pursue operational, acquisition or other opportunities to drive long-term value creation.
CEO of Omni-Lite Industries, Dave Robbins, comments.
“I am very pleased to have achieved this outcome, and believe this sale/leaseback transaction places us on the right path forward and is a pivotal step in our focused pursuit of generating long-term value creation for our shareholders.”
After capital gain taxes and transaction expenses, Omni-Lite Industries can expect to yield net proceeds of approximately US$5.6 million. US$1.5 million will be used to repay the borrowings under Omni-Lite Industries’ revolving credit facility.
As part of the sale-leaseback agreement, Omni-Lite Industries enters a 10-year lease agreement with an option to extend the term for another 10 years.
Omni-Lite Industries develops and manufactures mission-critical, precision components used by Fortune 100 companies in the aerospace and defense industries.
Omni-Lite Industries (OML) is up 2.35 per cent at C$0.87 per share at 1:34 PM EST.
