CALAMP CORP. (NASDAQ:CAMP) Files An 8-K Other EventsItem 8.01 Other Events.
On June 2, 2017, CalAmp Corp. (“CalAmp”) was notified that the Hong Kong International Arbitration Centre (the “Tribunal”) rendered a decision in arbitration proceedings involving the Company’s wholly-owned subsidiaries LoJack Corporation and LoJack Equipment Ireland DAC (collectively, “LoJack”) and EVE Energy Co., Ltd. (“EVE”), a former product supplier to LoJack. The Tribunal awarded damages to LoJack (the “Damage Award”) for EVE’s breach of contract.
On June 6, 2017, LoJack reached an agreement in principle with EVE and its controlling shareholder EVE Holdings Limited, as evidenced in a binding memorandum of understanding (“MOU”) between the parties, to resolve the Damage Award by the payment to LoJack of approximately US$46 million, which amount is net of LoJack’s attorneys’ fees and costs and LoJack’s insurance subrogation payment (the “Settlement”). to the MOU, approximately 90% of the Settlement amount is in cash and approximately 10% is in the form of EVE common stock. The cash portion is payable to LoJack in installments on June 20, 2017, October 31, 2017 and February 28, 2018. CalAmp has not yet determined the income tax effects of the Settlement, as it will depend in part on how the award is apportioned between LoJack’s domestic and international operations. The amounts to be realized by LoJack to the Settlement are expected to be material to CalAmp’s consolidated financial position and results of operations in the periods that the Settlement installments are received and recorded.
LoJack was represented by Ropes & Gray LLP in this matter.
About CALAMP CORP. (NASDAQ:CAMP)
CalAmp Corp. (CalAmp) is a provider of wireless communications solutions for a range of applications to customers globally. The Company operates through two business segments: Wireless DataCom and Satellite. The Company’s Wireless DataCom segment offers solutions for mobile resource management (MRM) applications, the machine-to-machine (M2M) communications space and other markets that require connectivity anytime and anywhere. The Company’s MRM and M2M solutions collect, monitor and report data and intelligence from remote and mobile assets. The Company delivers products, software services and solutions for energy, government, transportation and automotive vertical markets. The Company’s Satellite segment develops, manufactures and sells direct-broadcast satellite (DBS) outdoor customer premise equipment and whole home video networking devices enabling the delivery of digital and high definition satellite television services. Its satellite products are sold primarily to EchoStar.