Company Nets $1.25 Million in Upfront Consideration,
Secures Conditional Payments for Five Years
PHOENIX, AZ , Aug. 20, 2020 (GLOBE NEWSWIRE) -- BBHC, Inc., (“BBHC” or “the Company”) (OTC: TRNX), a sustainability technologies company, announced that it has sold its wholly-owned subsidiary MagneGas IP, LLC for $1.25 million in upfront consideration, plus additional contingent payments for five years. The sale constitutes a divestiture of all of the Company’s legacy intellectual property and patent portfolio.
As part of the transaction, the Company secured capital resources to continue to clear outstanding and potential near term liabilities. In addition, the transaction provides that in the event the intellectual property portfolio sold generates any revenues, royalties, partnership or other form of income directly attributable to the patented technology, the Company shall receive a commission of seven percent of the revenues received by the buyer.
“We believe this is a positive next step for the Company,” commented Scott Mahoney, CEO of BBHC. “The Company has experienced a near-total loss in business prospects due to the COVID-19 pandemic. Consequently, the Company made the difficult choice to begin systematically liquidating its remaining assets to continue to clear its liabilities and obligations. The lack of certainty around the timing of potential royalty payments that we previously anticipated having received by now forced us to seek some immediate value for our intellectual property without any further delays.”
“While we are disappointed that we can no longer pursue our goals for water sterilization and other potential applications for the patent portfolio, we feel this is the best path to provide for potential future shareholder value. The seven percent contingent payment for the next five years could provide significant value to the Company. Once we clear our liabilities and obligations, we hope to utilize those possible future payments to best convey value to shareholders through all available options, including a share buyback, cash dividend, buyout, reverse merger, or go private strategy. All strategic alternatives will be considered in due time,” concluded Mr. Mahoney.
About BBHC, Inc.
BBHC owns a controlling interest in Water Pilot, LLC. The WATER PILOT® System immediately reduces water consumption and provides you with live remote consumption monitoring for long term leak protection and water asset management. An integral, client based alarm and notification system that reports to any mobile device. Water Pilot may be appropriate for a wide range of businesses or properties with a water meter. For more information, please visit our website at www.gowaterpilot.com/
This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events, including our ability to raise capital, or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
For a discussion of these risks and uncertainties, please see our filings with the Securities and Exchange Commission. Our public filings with the SEC are available from commercial document retrieval services and at the website maintained by the SEC at http://www.sec.gov.