Sierra Monitor Corporation (OTCMKTS:SRMC) Files An 8-K Other EventsItem 8.01. Other Events
Evaluation of Potential Alternative Strategic Transactions
On April 13, 2017, Sierra Monitor Corporation, a California corporation (the “Company”) filed a Current Report on Form 8-K, which disclosed that the Board of Directors (the “Board”) of the Company had undertaken to identify and evaluate potential alternative strategic transactions in order to enhance value to the Company’s shareholders. The Board further advised that, on April 10, 2017, the Company had received $1,000,000 in cash from a potential strategic partner. Of the total cash received, $500,000 was an expense reimbursement for some of the out-of-pocket costs the Company had incurred in connection with its consideration of strategic alternatives. The other $500,000 was a fully refundable amount which the Company expected to return to the payer.
The Board has determined that it is not in the Company’s best interest to continue discussions with the strategic partner. As a result, the Company will return the $500,000 refundable amount and will expense approximately $50,000 in out-of-pocket costs related to its discussions with the strategic partner.
The Board and the Company’s management will continue the process of evaluating opportunities to enhance shareholder value, including a focus on returning to profitability, staffing for growth and evaluating alternative strategic transactions.
Statements in this Current Report on Form 8-K, including those statements related to the Board’s identification and evaluation of potential alternative strategic transactions, the potential transactions that could arise thereby and any other statements concerning the Company’s future expectations, beliefs, goals, plans or prospects may constitute forward-looking statements. Generally, forward-looking statements include expressed expectations, estimates and projections of future events and financial performance and the assumptions on which these expressed expectations, estimates and projections are based. Statements that are not historical facts, including statements about the beliefs and expectations of the parties and their management are forward-looking statements. All forward-looking statements are inherently uncertain as they are based on various expectations and assumptions about future events, and they are subject to known and unknown risks and uncertainties and other factors that can cause actual events and results to differ materially from historical results and those projected. Risks and uncertainties include the timing and results of the Board’s evaluation of potential alternative strategic transactions, the effect of such a transaction on the Company or on shareholder value, and the possibility that such a transaction will not be completed, or if completed, not completed on a timely basis. The Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
About Sierra Monitor Corporation (OTCMKTS:SRMC)
Sierra Monitor Corporation addresses the industrial and commercial facilities management market with Industrial Internet of Things (IIoT) solutions that connect and protect infrastructure assets. The Company’s segment is Industrial Internet of Things (IIoT) solutions. Its primary product lines include the FieldServer protocols gateways and the Sentry IT fire and gas detection systems. The FieldServer brand of protocol gateways is used by system integrators and original equipment manufacturers to enable local and remote monitoring and control of assets and facilities. It has approximately 200,000 installed gateways supporting over 140 protocols commercial and industrial facilities. Its Sentry IT fire and gas detection solutions are used by industrial and commercial facilities managers to protect their personnel and assets. Its fire and gas detection solutions are deployed in various facilities, such as oil, gas and chemical processing plants and wastewater treatment facilities.