SAN FRANCISCO, CALIFORNIA--(Marketwired - Nov. 9, 2016) - Noble Iron Inc. ("Noble Iron" or the "Company") (TSX VENTURE:NIR) announced that it has entered into a binding agreement (the "Agreement") effective today to sell its Houston, Texas, equipment sales and rental business. Pursuant to the Agreement, the Company has sold all of its shares of Noble Rents (TX), Inc., which operates the Houston operations, to an arm's length third party. Noble Iron will continue to operate and grow its equipment rental and sales operations in Southern California and other regions, as well as its software platform, Texada Software.
The purchase price for the Houston business is US $6.24 million. As part of the transaction, the purchaser has assumed an existing asset backed credit facility in the principal amount of US $5.63 million. The net proceeds to the Company are US $0.61 million, of which US $0.5 million is in cash and US$.11 million is in the form of an unsecured promissory note, due in November 2017 at an interest rate of 3% per annum.
Nabil Kassam, Noble Iron's Founder, Chairman and CEO, commented, "in consideration of the current state of Houston's challenged economy and the relatively small size of our Houston equipment operations, we feel this sale is positive as it is an opportunity to reduce outstanding debt and to better position us to focus on scaling our software and equipment logistics and fulfillment operations in Southern California as we enter into 2017. We at Noble Iron are committed to executing our goal of offering regional construction professionals the most comprehensive selection of equipment and services on-demand, because of a synergistic combination of our logistics infrastructure, equipment service capability, shared asset marketplace, and state-of-the-art software."
About Noble Iron Inc. (NIR: TSX Venture Exchange)
Noble Iron Inc. is a technology company that offers On-Demand construction equipment, and software applications to equipment owners and users to manage their equipment's lifecycle. The company operates in equipment rental, equipment sales, and software for construction and industrial equipment users and owners.
Noble Iron Inc.'s equipment rental and dealership operates under the name, "Noble Iron," and offers construction and industrial equipment and accessories for rent and for sale. Following the sale of its Houston business, Noble Iron will serve equipment customers in California.
Texada Software, a wholly owned subsidiary of Noble Iron Inc., offers cloud or client-based software applications for equipment rental companies, equipment dealerships, construction companies, general contractors, and construction or industrial equipment operators, including mechanics, and logistics and service technicians. Texada's software applications manage the entire equipment lifecycle, including equipment purchasing; rental and sales transactions; inventory location, utilization, maintenance and depreciation tracking; used equipment sales and disposals analysis; and inventory replenishment analysis. Texada's software products include, SRM (Systematic Rental Management), FleetLogic, Insight and Gateway. For more information, visit www.texadasoftware.com or call (800) 361-1233.
Noble Iron Inc. can be reached at 1-832-767-4424, or at www.nobleiron.com.
This news release may contain forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "estimate", "expect", "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including the difficulty in predicting acceptance of and demands for new products, the impact of the products and pricing strategies of competitors, delays in developing and launching new products, fluctuations in operating results and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industries in which the Company participates; others are more specific to the Company. The Company's ongoing quarterly filings should be consulted for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. Management assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.
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