BREKFORD CORPORATION (OTCBB:BFDI) Files An 8-K Other Events
Item 8.01 Other Events
into a letter of intent with LBB Associates Inc. (LBB)(the LOI).
to the LOI, Brekford would sell substantially all of the assets
and certain specified liabilities of its vehicle service business
to a new entity to be formed by LBB (Acquisition Co.). In
consideration for the sale, LBB would pay Brekford either
$4,000,000 in cash and $2,000,000 in a promissory note, or
$6,000,000 in cash, of which $1,200,000 would be held in escrow
for 18 months to cover any indemnification claims. In addition,
Brekford would receive a 19.9% equity interest in Acquisition Co.
described below and any agreement is subject to the negotiation
and execution of a definitive transaction agreement, which may
vary from the terms set forth in the LOI. A final transaction
also is anticipated to be subject to material conditions,
including, but not limited to: (i) the approval of the respective
boards of directors of LBB and the Company; (ii) receipt of
required consents; (iii) entering into agreements for the use of
related intellectual property, transition rights and services,
employment agreements with certain employees and customary
non-competition and solicitation agreements, and (iv) other
customary conditions for a transaction of this nature.
Accordingly, there can be no assurance that a definitive
agreement will be reached by the companies, or that any agreement
will result in the completion of a combination.
2017, during which time the Company has agreed it will not
solicit, negotiate, entertain or accept any third-party proposals
regarding the acquisition of the subject assets.
in the transaction described above, is not complete, and is
qualified in its entirety by reference to the full text of such
agreements, copies of which are attached as exhibits to this
Current Report on Form 8-K.Readers should review such agreements
for a complete understanding of the terms and conditions
associated with this transaction.
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Exhibit No.
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Description of Exhibit
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10.1
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Letter of Intent between Brekford Corporation and LBB
Associates, Inc., dated December 21, 2016 |
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99.1
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Press release, dated December 23, 2016
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About BREKFORD CORPORATION (OTCBB:BFDI)
Brekford Corp. is a public safety technology service provider of integrated traffic safety solutions, parking enforcement citation management and mobile technology equipment for public safety vehicle services to state and local municipalities, the United States Military and various federal public safety agencies throughout the United States and Mexico. The Company operates through the Traffic Safety Solutions segment. The Company’s products and services include Automated Traffic Safety Enforcement (ATSE), Electronic Ticketing System, Rugged Information Technology Solutions and 360 Vehicle Solution. ATSE systems are a range of measures that reduce vehicle speeds and crashes. It develops integrated and interoperable mobile systems that enable first responders, such as police, fire and emergency medical service (EMS), to obtain and exchange information in real time. Its 360-degree vehicle solution provides vehicle upfitting, mobile data and video solutions. BREKFORD CORPORATION (OTCBB:BFDI) Recent Trading Information
BREKFORD CORPORATION (OTCBB:BFDI) closed its last trading session up +0.007 at 0.110 with 183,213 shares trading hands.
