WAVD - WaveDancer closes investment in Gray Matters explores strategic alternatives

2023-03-21 18:17:47 ET

• WaveDancer ( NASDAQ: WAVD ) on Tuesday announced that it has sold its unit Gray Matters (GMI) to Gray Matters Data Corporation (GMDC).
• Gray Matters is the company's blockchain-enabled supply chain management software subsidiary.
• StealthPoint, as a lead investor in GMDC, will put in $3 million of cash with the option to invest an additional $1 million within 90 days of closing.
• WaveDancer has also retained an indirect 20% interest in GMI through stock in GMDC received at closing.
• In addition, WaveDancer received $1 million of cash at closing and will receive annual contingent payments over the next seven years, up to a total of $4 million.
• As of the closing date, WaveDancer said it is entitled to a seat on the GMDC board and has nominated Jamie Benoit.
• No member of the WaveDancer board, including the chairman, will have any investment in GMI, direct or indirect, other than through the ownership of WaveDancer shares, the company said.
• The transaction is expected to eliminate over $2 million of annual WaveDancer operating expenses related to GMI.
• The company has also hired B Riley as an advisor to immediately undertake a review of additional strategic options available to the company, including a merger or possible sale.
• Press Release .

For further details see: