BOS Announces the Signing of an Agreement for the Sale of NonCore Assets consideration for up to $875,000
The Agreement if for the sale of up to 35 million New World Brand Shares in
consideration for up to $875,000
RISHON LEZION, Israel—August 19, 2008 (BUSINESS WIRE)–B.O.S. Better Online Solutions
Ltd. (“BOS” or the “Company”) (NASDAQ: BOSC; TASE:BOSC), a leading provider of
comprehensive Mobile and RFID Solutions and Supply Chain Solutions, today announced that it signed with New World Brands, Inc. (“NWB”, OTCBB: NWBD.OB) an agreement for the sale to NWB of up to Thirty-Five (35) Million shares of NWB common stock.
Shmuel Koren, BOS’s President and CEO stated: “We have received the NWB Shares as consideration for the sale of our communications business in 2005 and 2006. This transaction is in
line with our strategy to strengthen our balance sheet and to focus on our core business of Mobile and RFID and of Supply Chain Solutions.”
The shares, amounting to approximately half of BOS’ holdings in NWB (directly and through Qualmax Inc., that holds a majority of NWB) shall be sold at a price per share of $0.025, reflecting a total consideration of up to $875,000.
BOS will sell the NWB shares on a monthly basis with an initial sale, in September 2008, of 5 million shares. Thereafter, each month through March 2011, BOS shall sell to NWB 1,000,000 shares against a monthly payment of $25,000. The rate of sale may be increased at the request of NWB, subject to BOS’ consent.
In case NWB fails to execute any monthly purchase, BOS shall be released from its undertaking to sell to NWB the then outstanding balance of the NWB Stock.
B.O.S. Better Online Solutions Ltd. (“BOS”) was established in 1990.
BOS’s operations consist of:
(i) Fully integrated Mobile and RFID Solutions that are offered either as stand alone
products or as full Solutions combined of:
(a) Hardware Devices – A Mobile and RFID Infrastructure with an automatic
identification and data collection equipment based on RFID and barcode technology; and
(b) Middleware – A variety of proprietary Servers intended to receive data from
Hardware, process it and transfer it to the Software Applications; and
(c) Software Applications – pointAct application platform for implementation of various
business organizational processes.
(ii) Supply Chain Solutions- reselling electronic systems and components for security, and aerospace manufacturers.
BOS is traded on NASDAQ Global Market and on the Tel-Aviv Stock Exchange. Their website is www.boscorporate.com.
For further information please contact:
B.O.S Better Online Solutions Ltd.
Mr. Eyal Cohen, CFO, +972-3-954-1000
Israeli Investor Relations – please contact
Mr. Zvi Rabin +972 50-560-0140
U.S. Investor Relations – please contact
Ms. Leslie Wolf-Creutzfeldt + 1 646-284-9472
The forward-looking statements contained herein reflect management’s current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results to differ materially from those in the forward-looking statements, all of which are difficult to predict and many of which
are beyond the control of BOS. These risk factors and uncertainties include, amongst others, the dependency of sales being generated from one or few major customers, the uncertainty of our being able to maintain current gross profit margins, inability to keep up or ahead of technology and to succeed in a highly competitive industry, inability to maintain marketing and
distribution arrangements and to expand our overseas markets, uncertainty with respect to the prospects of legal claims against BOS; and additional risks and uncertainties detailed in BOS’s periodic reports and registration statements filed with the U.S. Securities Exchange Commission. BOS undertakes no obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ
from those set forth in the forward-looking statements.