American Learning Corporation Announces Proposed Acquisition And Sale Of Certain Assets
04/06/11 - 10:18 AM EDT
American Learning Corporation (the “Company”) (NASDAQ:ALRN) is pleased
to announce it has signed a non-binding letter of intent to acquire an
80% interest in an east coast company which provides educational and
behavioral health professionals that has reported revenues averaging
over $30 million per year over the last few years. The Company will have
the option to acquire the remaining 20% interest at a future date.
The proposed acquisition would be accretive to the Company’s earnings
immediately. Payment for the proposed acquisition is to be made by a
combination of cash and notes payable at closing with an additional sum
based on future earnings. Current management in the company will
continue in their existing capacities. As is customary, the proposed
acquisition is subject to due diligence and the consummation of a
legally binding agreement.
Gary Gelman, the Company’s President, stated, “The proposed acquisition
would mark the next step in the development of the Company and
accelerate its expansion plans.”
Also, on March 31, 2011, the Company completed the disposition of
certain assets of its wholly owned subsidiary, Interactive Therapy Group
Consultants, Inc. (“ITG”), pursuant to an Asset Purchase Agreement (the
“Agreement”) among the Company, ITG, Liberty Resources POST, LLC
(“Liberty”) and John Torrens. In consideration of the purchase price
provided for in the Agreement, the Company sold certain assets related
to ITG’s business in the upstate region of New York State. Total
compensation to the Company, in the amount of $650,000, consisted of
$200,000 in cash and a note receivable in the amount of $450,000. At the
closing, $25,000 of the cash consideration was deposited into an escrow
account subject to the assignment of a certain contract to Liberty by
the Company. In addition, the Company released John Torrens, ITG’s
former President, from his non-competition agreement for a sum of
$100,000 in cash. ITG will continue to operate in the downstate area of
New York State (New York City and Long Island).
American Learning Corporation, through its wholly owned subsidiaries,
Interactive Therapy Group Consultants, Inc. and Signature Learning
Resources, Inc., offers a comprehensive range of services to children
with developmental delays and disabilities.
For further information contact: Gary J. Knauer, Chief Financial
Officer, American Learning Corporation, One Jericho Plaza, Jericho, NY
11753; telephone number (516) 938-8000.