IRVINE, Calif., Feb. 27, 2012 /PRNewswire/ -- PRO-DEX, INC. (Nasdaq: PDEX) announced today the sale of its fractional horsepower motor business, operating under the name Pro-Dex Astromec and located in Carson City, Nevada.
Under the terms of the asset purchase agreement, executed on February 27, 2012, the Company sold substantially all the assets of Astromec, consisting of inventory, equipment and intangibles, and excluding cash, accounts receivable, the parent-owned facility in which Astromec conducted its business and all liabilities, for a cash payment of $830,000, representing the estimated net book value of the purchased assets and subject to adjustment based on physical counts of the assets sold. The Company may also receive conditional future payments based on sales of Astromec product and sales to Astromec prospects, as defined in the asset purchase agreement, over the ensuing three-year period.
Mark Murphy, the Company's President and Chief Executive Officer, commented, "The decision to sell the Astromec business, which has a customer concentration in aerospace, reflects our strategic focus on the expansion of opportunities in medical devices and motion control systems. We look forward to working with our Astromec associates in facilitating the transfer of the Astromec business, and thank them for their dedicated service to Pro-Dex."Pro-Dex, Inc., with operations in California and Oregon, specializes in bringing speed to market in the development and manufacture of technology-based solutions that incorporate powered surgical device drive and embedded motion control systems serving the medical, dental, semi-conductor and scientific research markets. Pro-Dex's products are found in hospitals, dental offices, medical engineering labs, scientific research facilities and high tech manufacturing operations around the world. For more information, visit the Company's website at www.pro-dex.com. Statements herein concerning the Company's plans, growth and strategies may include 'forward-looking statements' within the context of the federal securities laws. Statements regarding the Company's future events, developments and future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. The Company's actual results may differ materially from those suggested as a result of various factors. Interested parties should refer to the disclosure concerning the operational and business concerns of the Company set forth in the Company's filings with the Securities and Exchange Commission.