KITCHENER, ON, Jan. 2 /CNW/ - Electrohome announced today that effective
January 1, 2008 it has completed the sale of its trademarks and a related
licensing agreement to SYNNEX Canada Limited, previously the major licensee
using the trademarks.
The trademark assets were sold for $1,500,000. The sale was previously
approved by shareholders on May 10, 2007. SYNNEX advanced Electrohome $600,000
over six months from July to December 2007. The advances, interest and fees
were deducted from the purchase price, resulting in cash proceeds to
Electrohome on closing of $887,000.
As a result of the sale, Electrohome will no longer receive any royalty
income from trademarks.
Cash proceeds from the sale will be used to fund operations while
Electrohome's remaining assets and liabilities continue to be monetized and/or
Electrohome's business is principally that of a holding company with a
31% interest in Mechdyne Corporation which is the largest international
company operating exclusively in the advanced visualization marketplace.
Electrohome's obligations primarily consist of post-employment benefit costs
and environmental remediation associated with a previously discontinued
Electrohome's shares are traded on the NEX board of the TSX Venture
Exchange under the symbols ELL.H, Class X voting shares and ELL.K, Class Y
non-voting shares. Trading data for these shares can be found on
www.tsx.com/en/nex/index.html. Electrohome's regulatory filings including its
Annual Report, Audited Financial Statements, Management Discussion and
Analysis, Proxy Information Circular, Annual Information Form and all other
interim filings can be found on www.sedar.com. Also visit Electrohome's
website at www.electrohome.com.
TSX Venture Exchange has not reviewed and does not take responsibility
for the adequacy or accuracy of this release.
For further information:
For further information: John A. Pollock, Chairman and Chief Executive
Officer or Gary Dumoulin, Vice-President and Secretary at (519) 749-3319