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SALT LAKE CITY - Audio-visual technology company ClearOne, Inc. (NASDAQ:CLRO), currently valued at $8.88 million in market capitalization, announced it has sold certain assets to Biamp Systems, LLC as part of its strategic plan to eventually sell all or most of its current operations. According to InvestingPro data, the company has been facing significant financial challenges, with revenue declining 35% in the last twelve months.
The transaction, which was completed on October 24, includes the sale of intellectual property, product inventory, and customer data. Assets excluded from the deal are ClearOne’s parent company books and records, equity of the sellers or their subsidiaries, and assets related to ClearOne’s public company status, including transfer records, registrations, and stock listings. This strategic move comes as the company faces mounting operational challenges, with InvestingPro analysis showing negative EBITDA of $9.85 million and the stock declining nearly 40% over the past six months.
Product warranty and support operations were also excluded from the sale. ClearOne stated it will continue to provide these services in line with its published warranty policy.
"ClearOne will continue to exist as a public company after this asset sale," said Derek Graham, CEO of ClearOne. "We believe that this asset sale is the best way to maximize value for current shareholders while allowing the company to pivot to take advantage of new business opportunities in the future." Despite current challenges, the company maintains a healthy liquidity position with a current ratio of 2.25, indicating sufficient assets to cover short-term obligations. Get more detailed insights and 6 additional key tips about CLRO’s financial health with InvestingPro.
The company, which has historically provided conferencing and collaboration technologies including beamforming microphones, DSP mixers, and video conferencing solutions, described the transaction as part of its previously disclosed strategic process.
The financial terms of the agreement were not disclosed in the press release statement.
Biamp Systems is known as a provider of professional audio-visual solutions in the global market.
In other recent news, ClearOne Inc. has made moves to repurchase warrants from two different entities. The company entered into a Warrant Repurchase Agreement with Edward Bryan Bagley, buying back warrants that were originally issued on December 17, 2019, for a total of 3,788 shares. ClearOne paid $0.6504 per share, amounting to a total purchase price of $2,464, and subsequently canceled these warrants. Additionally, ClearOne repurchased warrants from Intracoastal Capital, LLC, which were originally issued on September 12, 2021, and exercisable for 6,039 shares. The financial details of this transaction amounted to $3,927.77. These recent developments indicate ClearOne’s strategic financial adjustments through the repurchase and cancellation of outstanding warrants.
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