ST. JOHN'S, NL, May 30, 2011 /CNW/ - Rutter Inc. (TSX: RUT) today
announced it has concluded the necessary agreements and closed the sale
of its Voyage Data Recorder ("VDR") business to NetWave Systems B.V.
With the cash proceeds of $2,448,000 applied against outstanding Term A
debt as well as proceeds from the previously announced sale of the
Consulting Engineering business, expected to close this week, and
existing cash, the Company expects to retire its Term A loan prior to
the August 31, 2011 maturity date.
In commenting on the sale to NetWave, Fraser Edison, President and CEO
of Rutter Inc., noted "NetWave is a company known to us both as a
competitor in the VDR market and as a supplier, providing us with the
"Final Recording Medium" capsule that is an integral part of the VDR
product. We have always had a good working relationship with NetWave
and in concluding the sale; both parties have worked hard to ensure
there will be a smooth transition and minimal disruption to our former
customers and dealer network."
Mr. Edison also noted, "We believe the steps taken in the past eight
months to dispose of the VDR product line and the Engineering business,
in addition to allowing the Company to address debt maturing in August
2011, are further positive steps in refocusing the organization. We
continue to work to establish a stronger market presence with our radar
products, and are looking for opportunities to expand our outsource
manufacturing capabilities and market presence in Canada."
About Rutter Inc. - Rutter is an enterprise focused on providing innovative technologies
and engineering solutions. Rutter's global network supplies
technologies to improve efficiency and safety in the marine, defense,
transportation, oil and gas sectors from its headquarters in the
Province of Newfoundland and Labrador.. For more information go to: http://www.rutter.ca
This press release may contain forward-looking statements that involve
risks and uncertainties. These statements reflect current expectations
and are subject to a number of risks and uncertainties including but
not limited to, change in technology and general market conditions. Due
to the many risks and uncertainties, Rutter Inc. cannot assure that
forward-looking statements that may be contained in this press release
will be realized.
The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.
SOURCE RUTTER INC.
For further information:
President and CEO
Tel: 1 709 576 6666