on StarTrak business
Aug 23, 2010 10:57 AM
Alanco Technologies Inc has announced strategic initiatives to support its refocus on its StarTrak Systems wireless asset management business, after completion of its asset divestiture program August 18, 2010. Alanco provides wireless monitoring and asset management systems through its StarTrak subsidiary. StarTrak supplies tracking, monitoring, and control services to refrigerated transporters.
The company believes that continued NASDAQ listing is crucial to maximize long-term market valuation and trading liquidity of its common stock. Therefore, it will implement a shareholder-approved reverse stock split to maintain compliance with the NASDAQ minimum $1.00/share bid price listing requirement. The company expects the stock split, at a ratio yet to be determined, to take effect in late August 2010.
Alanco plans to execute a corporate name change, subject to shareholder approval, to reflect the refocused business and recognition of the StarTrak brand.
The firm plans to consolidate its corporate headquarters into StarTrak’s existing offices in Morris Plains NJ by calendar year-end, which should result in improved communications and operational support.
Alanco will solicit investment banker advice to evaluate strategic alternatives available to enhance shareholder value. The company anticipates that a range of options will be developed as a result of this process for review with its board of directors and advisors.
“With the successful completion of our asset divestiture strategy, we can now focus on achieving the full potential of our StarTrak business, which is on pace for projected growth of 35% to over $20 million in FY2011," said Robert R Kauffman, Alanco chairman and chief executive officer. “Also, as the company transitions from the holding company structure, we are implementing a management succession plan to select an outstanding candidate to eventually assume my CEO responsibilities.”
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