Livewire Mobile, Inc. announced today that the sale of certain of its assets and liabilities to OnMobile Global Limited has closed.
In connection with the closing, the Company received cash proceeds (net of transaction costs) of approximately $14.3 million. An additional $2.9 million was placed into escrow for certain performance and other contingencies. No distributions to shareholders are planned at this time.
$1.74 million of the proceeds will be deposited with the United States District Court of Massachusetts in compliance with an order stemming from a suit brought by two former directors of the Company’s non-operating Bangalore, India subsidiary seeking indemnification against potential Indian tax liabilities. The Company continues to believe these indemnification claims as well as their associated underlying Indian tax claims are without merit and is maintaining a vigorous defense.
The Company will immediately proceed to change its name to Live Microsystems. Live Microsystems, with its remaining assets and liabilities, will continue to trade on the limited-disclosure tier of OTC Markets and has applied for the new stock symbol LMSC.
Investors seeking future information concerning the company or its stock are advised to look for company press releases filed on the OTC Markets under the symbol LMSC. This will be the only location that future corporate information is guaranteed to be posted.
Also effective with the closing, the majority of the Company’s employees have become employees of OnMobile. Further, the Company announces the following management changes:
- Robert Pons will continue as Chairman of the Board of Live Microsystems;
- Matthew Stecker will retain his role as CEO of Live Microsystems, and also become Treasurer;
- Todd Donahue, formerly CFO, has accepted a leadership role at OnMobile;
- Matt Gerritsen will retain his role as General Counsel of Live Microsystems
"We're excited to have closed this transaction and are eagerly pursuing new business opportunities that will allow us to take advantage of our operating structure and large cumulative NOL in a way that is favorable for all shareholders. We will also be working to secure successful redemption of escrow funds related to the OnMobile transaction as well as favorably dispose of existing litigation," said Matthew Stecker, CEO of Live Microsystems.