WILMINGTON, DE--(Marketwired - Jul 12, 2016) - Acorn Energy, Inc. (OTCQB: ACFN) today announced it has completed the sale of the assets of its GridSense® subsidiary to Franklin Electric Co., Inc. (NASDAQ: FELE) for a gross sales price of $1 million. The asset sale follows Acorn's April 21, 2016 announcement of its intention to liquidate its GridSense business. Acorn will host a conference call today at 4:15 pm ET to discuss this transaction in the context of Acorn's overall refocused corporate strategy (call details below).
Acorn expects that the proceeds from the sale, after transaction costs and an indemnity escrow of $100,000 will be allocated by an independent liquidation officer to satisfy, to the extent of the funds available, the claims of GridSense creditors, including Acorn which is GridSense's largest creditor. Acorn expects to record a gain from discontinued operations on this transaction in its third quarter report, as the value of the GridSense assets had previously been written down to nearly zero.
GridSense develops and markets remote monitoring systems for electric utility companies. It generated revenue of $2.5 million in 2015, but had not generated profits or positive cash flow for Acorn in the recent past. GridSense was reported as a discontinued operation in Acorn's first quarter results.
Jan Loeb, Acorn's CEO, commented, "We view the sale to Franklin Electric as the best possible outcome for both Acorn and the GridSense team. The sale aligns GridSense with a strong company, platform and resources that are focused on serving the utility industry. We are very pleased to have achieved such a favorable outcome in a short timeframe."
Conference Call Details:
Date/Time: Tuesday July 12th at 4:15 pm ET
Dial In #: 888-243-4451 or 412-542-4135 Int'l
Online Reply/Transcript: Audio file and call transcript will be posted to the
investor section of Acorn's website when available.
About Acorn Energy, Inc. (www.acornenergy.com)
Acorn Energy, Inc. is currently a holding company with investments in two portfolio companies:
OmniMetrix™, Inc. (www.omnimetrix.net) -- is a leader and pioneer in machine-to-machine (M2M) wireless remote monitoring and control for pipelines, stand-by generators, cell towers, medical facilities, data centers, public transportation systems, and other critical equipment, including at federal, state and municipal government facilities. OmniMetrix is a proven solution for making critical systems more reliable, with over 16 years of experience and thousands of monitored assets. Acorn has an 80% equity stake in OmniMetrix and consolidates its results of operations.
DSIT Solutions Ltd. (www.dsit.co.il) -- develops and produces sonar systems for the defense, HLS, energy and commercial markets. The company employs a world-class multi-disciplinary team of professionals that are skilled in the latest sonar and real-time technologies. DSIT products include: The Shield family of Diver Detection Sonars, Anti-Submarine Warfare and Hull Mounted Sonar systems, Portable Acoustic Ranges, Underwater Acoustic Signal Analysis applications and sonar simulators and trainers. Acorn has a 41.2% equity stake in DSIT, and beginning in the second quarter of 2016 no longer consolidates DSIT's results of operations, but instead accounts for its investment in DSIT under the equity method.
Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and fuel. Recognized as a technical leader in its products and services, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications.
Safe Harbor Statement
This press release includes forward-looking statements, which are subject to risks and uncertainties. There is no assurance that Acorn will be successful in maximizing the value of its operating companies and other assets. A complete discussion of the risks and uncertainties which may affect Acorn Energy's business generally and the businesses of its portfolio companies is included in "Risk Factors" in the Company's most recent Annual Report on Form 10-K as filed by the Company with the Securities and Exchange Commission.