Pontus Proteins announces that it has entered into an asset purchase agreement dated November 3, 2022, with CEVAS Technology, pursuant to which the company will sell substantially all of the company's assets, more particularly all of those assets used in its aquaponics farming business.
The assets which make up the aquaponics segment include (i) the company's closed-environment vertical aquaponics system ("CEVAS") and all intellectual property associated with the CEVAS; (ii) the company's harvesting automated robotic vehicle ("HARV"), being a vertical farm rack system and automated plant tending and harvesting robot designed to work alongside and assist CEVAS, and all intellectual properties associated with HARV; and (iii) all other formations and know-hows of the aquaponics segment.
Pursuant to the terms of the purchase agreement, the company has agreed to sell the assets to the buyer for consideration consisting of (i) $200,000 payable in cash and (ii) the assumption of up to $3,500,000 in liabilities and obligations of the Aquaponics Segment, including accounts payable, liabilities and obligations under any contract or lease related to the aquaponics segment.
The transaction will provide the company the opportunity to reduce its overall liabilities and to focus on its other business segment, which provides catering and product consultation services to its customers. Current market conditions for entities similar to the company, and the ability to raise capital in this environment to further develop and expand the company's assets, are very uncertain, and it would be difficult for the company to restore and increase value for its shareholders with significant liabilities. Accordingly, the management and board of directors of the company determined that this was a unique opportunity to restructure itself, focus on the catering business, and consider strategic opportunities.
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