MyCelx Technologies Corporation Sale of MYCELX property in Duluth, USA (5489P)
18 Febbraio 2021 - 8:00AM
UK Regulatory
TIDMMYX TIDMTTM
RNS Number : 5489P
MyCelx Technologies Corporation
18 February 2021
18 February 2021
MYCELX Technologies Corporation (AIM: MYX)
("MYCELX" or the "Company")
Sale of MYCELX property in Duluth, USA
MYCELX Technologies Corporation ("MYCELX" or the "Company"), the
clean water technology company providing patented solutions for the
Oil and Gas market and commercial industrial markets worldwide,
announces the sale of its building in Duluth, Georgia, USA. This
sale will enable the Company to right-size its office space needs
across its three operating locations. The Company will receive a
cash consideration of $5.4 million.
The Company has a debt obligation of circa $2.62 million on the
property, so the net cash proceeds are expected to be in the range
of $2.78 million. The current net book value of the property is
$2.87 million, so MYCELX will recognize a financial gain of
approximately $2.53 million.
When the building was originally purchased, the Company's
engineering and business development capability was based in
Duluth. However, now the Company has other offices across the globe
and subsequently, personnel have relocated to these locations
resulting in vacant office space.
MYCELX plans to convert the equity in the building into cash for
working capital purposes and the team will relocate to another
office and manufacturing property nearby that will better suit its
needs and footprint. The sale of the property is in line with the
Company's cost reduction strategy, reducing the overall cost of its
office space and disposing of excess capacity.
The sale of the property to Angkawijana, L.L.C. is subject to
certain typical completion conditions to closing. Post transaction,
the Company expects to have circa $6 million of cash and cash
equivalents on the balance sheet. The transaction is expected to
close within the next 30 days.
MYCELX has historically had no profits/losses attributable to
its Duluth property.
MYCELX recently applied for and received a second $400,000
forgivable loan from the Payroll Protection Program administered by
the US Small Business Administration. The funds will be put towards
maintaining payroll and other corporate purposes.
For further information please contact:
MYCELX Technologies Corporation
Connie Mixon, CEO Tel: +1 888 306 6843
Kim Slayton, CFO
Canaccord Genuity Limited (Nomad and broker) Tel: +44 20 7523 8150
Henry Fitzgerald-O'Connor
Georgina McCooke
Celicourt
Mark Antelme Tel: +44 20 8434 2754
Jimmy Lea
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END
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February 18, 2021 02:00 ET (07:00 GMT)
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