AirIQ Closes Sale of Vehicle Finance Division
TORONTO, ONTARIO – AirIQ Inc.’s sale of its Vehicle Finance division — consisting of certain assets of its wholly owned subsidiary, AirIQ U.S., Inc. — to CalAmp DataCom, Inc., a subsidiary of CalAmp Corp., has closed. The proceeds of US $19,000,000 in cash converts to CDN $22,350,000 using an exchange rate of CDN1.1764 for each U.S. dollar.
The Board of Directors of AirIQ considered the sale of the Vehicle Finance division as part of its previously announced intent to review strategic alternatives and determined that the sale of this division was the best course of action for the company at this time. GMP Securities L.P., the financial advisor engaged in connection with this ongoing review, provided an opinion to the Board that the sale of the Vehicle Finance division was fair, from a financial point of view, to the company and its shareholders.
The parties also entered into an escrow agreement whereby US $1.9 million of the proceeds were directed to an escrow account to be held for a period of 12 months from the closing date in support of certain representations and warranties made by the Company to CalAmp.