Volt Information Sciences Receives $5 Million in Net Cash as Part of Early Retirement of Note and a Settlement Agreement with NewNet Communication Technologies, LLC
NEW YORK--(BUSINESS WIRE)-- Volt Information Sciences, Inc. (“Volt” or the “Company”) (NYSE-AMERICAN:VISI), an international provider of staffing services and managed service programs, today announced it has entered into a settlement agreement with NewNet Communication Technologies, LLC (“NewNet”) and the Company’s affiliate Volt Delta Resource Holdings, Inc. (“Volt Delta”).
The settlement related to the Company’s December 2014 sale of its Computer Systems segment, Volt Delta, to NewNet, a transaction which generated proceeds of $10.0 million in the form of an interest-bearing note maturing on December 1, 2018 (“the Note”). The December 2014 transaction also included a working capital adjustment and certain indemnity claims which remained outstanding prior to October 27, 2017.
Under the agreement, NewNet agreed to pay off the Note more than a year early for $7.5 million. Volt agreed to settle the outstanding working capital adjustment, receivables under the transition services agreement, and other indemnity claims for $1.5 million. The net result is the Company received cash from NewNet of $5 million on October 27, 2017, as well as a $1 million promissory note maturing no later than January 31, 2018. The Company and NewNet agreed to a mutual release, relieving all parties of their obligations and settling minor indemnity claims.
Commenting on the announcement, Michael Dean, Volt’s President and CEO, said, “We are very pleased to have successfully resolved all outstanding issues related to the prior sale of Volt Delta. This settlement has resulted in an immediate net cash inflow of $5 million, further improving Volt’s balance sheet and financial flexibility.”
Information concerning the completion of this transaction was filed by Volt today with the Securities and Exchange Commission and can be obtained at www.sec.gov or the “Investors” section of Volt’s website at www.volt.com.
About Volt Information Sciences, Inc.
Volt Information Sciences, Inc. is a global provider of staffing services (traditional time and materials-based as well as project-based) and managed service programs. Our staffing services consists of workforce solutions that include providing contingent workers, personnel recruitment services, and managed services programs supporting primarily professional administration, technical, information technology, light-industrial and engineering positions. Our managed service programs consist of managing the procurement and on-boarding of contingent workers from multiple providers. Our complementary businesses offer customized talent, technology and consulting solutions to a diverse client base. Volt services global industries including aerospace, automotive, banking and finance, consumer electronics, information technology, insurance, life sciences, manufacturing, media and entertainment, pharmaceutical, software, telecommunications, transportation, and utilities. For more information, visit www.volt.com.
This press release contains forward-looking statements that are subject to a number of known and unknown risks, including, among others, general economic, competitive and other business conditions, the degree and timing of customer utilization and rate of renewals of contracts with the Company, and the degree of success of business improvement initiatives that could cause actual results, performance and achievements to differ materially from those described or implied in the forward-looking statements. Information concerning certain of these and other factors that could cause actual results to differ materially from those in the forward-looking statements are contained in company reports filed with the Securities and Exchange Commission. Copies of the Company’s latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, as filed with the Securities and Exchange Commission, are available without charge upon request to Volt Information Sciences, Inc., 1133 Avenue of the Americas, New York, New York 10036, Attention: Shareholder Relations, 212-704-7921. These and other SEC filings by the Company are also available to the public over the Internet at the SEC’s website at http://www.sec.gov and at the Company’s website at http://www.volt.com in the Investors section. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Source: Volt Information Sciences, Inc.
Released November 1, 2017