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LAS VEGAS, Oct. 1, 2013 (GLOBE NEWSWIRE) -- Inova Technology (OTCQB:INVA) announced that it has sold its RFID businesses, Trakkers and RightTag, to Xumanii International Holdings Corp ("Xumanii") (OTCQB:XUII) for 2 million preferred shares of Xumanii. The purpose of the transaction is to unlock value by breaking up Inova into two segments where the RFID business and network solutions business can pursue their own respective business plans separately. The effective date of the transaction is October 1, 2013.
Inova CEO, Adam Radly, said, "Inova reported annual revenue of $18 million for our most recent fiscal year yet our market capitalization is only in the hundreds of thousands. It's likely that our debt is one reason for the low market cap. It's also possible that the market doesn't like the combination of network solutions and RFID in one company. Some investors have indicated that they like RFID and don't like network solutions while others take the opposite view. As a result, we decided to break Inova into two parts so that the network solutions business and RFID business can pursue their own business plans without being constrained by the other and also to enable shareholders to choose to invest in one or the other or both as opposed to being forced to invest in both."
The sale of assets includes the following:
Trakkers LLC along with all of the intellectual property associated with its current and future products and solutions.
The business and assets of Right Tag, Inc.
Trakkers LLC has approximately $4 million of debt that will remain with Trakkers LLC.
All of the assets that were sold in this transaction were sold by Tesselon LLC (a subsidiary of Inova)
Inova CEO, Adam Radly, said, "We sold Trakkers for $2 million. Even though Trakkers only represents approximately 6% of Inova's revenue the $2 million sale price is more than 5 times Inova's entire market cap so we are obviously very happy with the transaction. The transaction will also help both Inova and Trakkers to restructure its debt."