WiSA Technologies, Inc. (NASDAQ:WISA), a semiconductor company with a market capitalization of $17 million, has amended its previously announced asset purchase agreement with CompuSystems, Inc. (CSI).
The amendment, dated December 30, 2024, modifies the terms of the agreement originally entered into on December 19, 2024. According to InvestingPro analysis, the company currently shows signs of financial strain, with a weak overall financial health score.
Under the amended agreement, WiSA Technologies will acquire certain assets and interests from CSI, including customer contracts, trademarks, and other intellectual property related to the Acquired Business. The amendment introduces a revised breakup fee of $1,000,000, which is to be paid into an escrow account by January 10, 2025.
While the company maintains a healthy current ratio of 2.26, InvestingPro data reveals the company is quickly burning through cash, which could impact its ability to complete the transaction.
Additionally, the amendment allows WiSA Technologies until January 10, 2025, to secure a majority of the company's stockholders to execute the Voting Agreement, which is essential for the acquisition process.
The announcement of this amendment comes as WiSA Technologies prepares for its 2025 Annual Meeting of Stockholders, where the proposed asset purchase will be presented for approval. With an EBITDA of -$19.35 million in the last twelve months, stockholders will likely scrutinize this transaction carefully.
The company has stated that it will file a proxy statement with the U.S. Securities and Exchange Commission (SEC) and provide all relevant materials to its stockholders ahead of the meeting.
For deeper insights into WISA's financial position and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks.
WiSA Technologies, which trades on The Nasdaq Capital Market under the ticker symbol NASDAQ:WISA, has urged its stockholders to read the proxy statement and other relevant documents filed with the SEC, as they will contain important information about the transaction.
The company has highlighted that this press release is not a solicitation of a proxy, consent, or authorization with respect to any securities or in respect of the proposed transaction. Moreover, this is not an offer to buy or sell any securities, and the transaction is subject to the satisfaction of certain conditions, including stockholder approval.
This news is based on a press release statement and includes forward-looking statements that are subject to risks and uncertainties. WiSA Technologies has emphasized that actual results may differ materially from those projected due to various factors, including risks associated with completing the transaction and integrating the acquired assets.
The company's CEO, Brett Moyer, has signed off on the report, ensuring compliance with the Securities Exchange Act of 1934. The detailed amendment to the Asset Purchase Agreement is filed with this Current Report on Form 8-K as Exhibit 2.1.
In other recent news, WiSA Technologies has unveiled a series of wireless audio innovations, integrated its WiSA E wireless multichannel audio software into Sagemcom's Video Soundbox, and announced the acquisition of CompuSystems, Inc. WiSA Technologies is also set to acquire intellectual property and technology assets from Data Vault Holdings Inc. and rebrand as Datavault Inc.
The company's Q3 revenues have shown a notable increase, reaching $1.2 million, a 240% rise from the previous year. WiSA Technologies also managed to decrease its inventory by 17%, ending the quarter with a robust cash position of $3.9 million.
In terms of management changes, the company confirmed the resignation of Mr. Gary Williams, with Mr. Stanley Mbugua succeeding him as the new Chief Accounting Officer. WiSA Technologies also extended the warrant exercise period, a strategic move to encourage warrant holders to participate in the exercise process, potentially increasing the company's equity base. These developments highlight the ongoing strategic moves and managerial decisions within WiSA Technologies.
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