Update for Productivity Technologies Corp. (PRAC) Shareholders
CHICAGO, Nov. 7, 2018 /PRNewswire/ --
Shareholders:
We previously announced success in efforts to obtain control of PTC and its operating subsidiary Atlas Technologies.
We seek to update you regarding certain management and board actions since we formally took control of PTC and Atlas after the final court approval of the previously pending litigations in September. These litigations have now been concluded and dismissed. Upon final court approval, Messrs. Samuel Seidman and Arthur Stupay resigned all of their prior roles with PTC and Atlas. Mr. Seidman is no longer Chairman and CEO of PTC and Atlas, and Mr. Stupay is no longer a director of PTC. Further, both Messrs. Seidman and Stupay relinquished all of the PTC shares they previously possessed.
Since we assumed control of PTC, we engaged a broker to arrange a sale/leaseback transaction for Atlas' factory. We were encouraged by the initial responses. A few weeks ago, we entered into a contract with a buyer whom we deemed capable to close the transaction. Pending the completion of this buyer's due diligence, the potential sale/leaseback of the Atlas factory is anticipated in December.
Second, we initiated discussions with a number of companies (less than ten) in Atlas' served markets which we believe have the capability, financial strength and interest to purchase some or all of the operating assets and operations of Atlas. We are now engaged in serious discussions with several of these potential buyers. While there can be no assurance that we will reach terms with one or more of these buyers, we hope in the next four to six weeks to be in a position to negotiate acceptable terms with a buyer offering the best price, terms and certainty to close.
Third, we closed yesterday on new financing which can help Atlas clear up accounts with vendors. These outstanding obligations hindered materials from flowing to Atlas during the PTC intra-board dispute and related litigations. We believe the financing will also support continued sales and technical efforts by Atlas to obtain profitable work and thereby increase the value of Atlas to ultimately benefit PTC shareholders.
Fourth, upon being seated as the new board, we intensively reviewed the actions of certain advisors to the controlling members of the prior board. We are reviewing these matters carefully to determine whether their actions may give rise to future claims on behalf of PTC shareholders.
Consistent with prior shareholders letter, we are focused on obtaining one or more near term liquidity events for PTC shareholders.
We will continue to keep PTC shareholders informed.
Jesse Levine
The above may include predictions that might be considered forward-looking. While statements represent our current judgments regarding the future, these are subject to risks and actual future results could differ materially. You are cautioned to not unduly rely on forward-looking statements, which reflect our opinions only as of today's date. While we will try to do so, we are not obligating ourselves to revise or publicly release revisions to forward-looking statements upon new information or future events
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SOURCE Jesse Levine
