Saskatoon, SK April 6, 2011 – International Road Dynamics Inc. (IRD) announced today that it has entered into an agreement to sell its head office and manufacturing facility located in Saskatoon Saskatchewan for a purchase price of approximately $6.7 million. Net cash proceeds from the sale, after the retirement of the $2.6 million mortgage on the property and other costs related to the transaction, will be approximately $3.7 million which will be initially used to reduce the Company’s operating line of credit.
The Company has also entered into a twelve-year net lease agreement with the purchaser of the property with two options to renew the lease for additional five-year terms. The Company will record a book gain of approximately $2.9 million on the sale transaction, which will be amortized over the term of the lease. The transaction is expected to close on or before April 15, 2011.
“This innovative transaction significantly enhances our balance sheet and financial position, and provides additional capital to invest in the Company’s long-term growth,” stated Terry Bergan, IRD's President and Chief Executive Officer. “As a technology-based company, we believe this was a prudent and appropriate step as we are confident we can generate a higher return on investment for our shareholders through our proven value enhancing strategies than in owning our real estate.”
IRD is a highway traffic management technology company specializing in supplying products and systems to the global Intelligent Transportation Systems (ITS) industry. IRD is a North American company based in Saskatoon, Saskatchewan Canada with sales and service offices throughout the United States and overseas. Private corporations, transportation agencies and highway authorities around the world use IRD's products and advanced systems to manage and protect their highway infrastructures.
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The Company’s shares trade on the Toronto Stock Exchange under the symbol IRD.
FOR MORE INFORMATION PLEASE CONTACT:
President & CEO
Phone: (306) 653-6600
U.S. (303) 355-5998
Phone: (306) 653-6603
Fax: (306) 653-1454
IRD is listed on the TSX - trading symbol - IRD