StockerYale sells off units
StockerYale has sold two aspects of its business for more than $1 million, including an Asian subsidiary and a fiberoptics business.
The handful of sales employees based in Salem won’t be affected by the deal, according to Fred Pilon, a spokesperson from the company.
StockerYale — a provider of photonics-based products – had previously announced that it was planning to exit this older line of the business because it was not growing as quickly as newer lines, including lasers, LEDs and specialty optical fiber.
The sales will give the troubled company – which has been trying to strengthen its cash position — another $535,000 in cash.
The company’s StockerYale Asia subsidiary has been sold to Radiant Scientific Pte. Ltd., which was founded by the company’s Singapore management team, in a deal that was structured as a stock sale.
The fiberoptics business, which had long since moved its manufacturing operations to Montreal, was sold to Techni-Quip Corp. of Pleasanton, Calif. In this case, only the assets were sold. Both the sales staff in Salem and the other employees in Montreal will continue to work for StockerYale, just on other products, Pilon said. The Salem plant now employs between 30 to 40 people, he said.
In addition, StockerYale agreed to supply specialty fiber products to Techni-Quip over a five-year period with a minimum value of $275,000 and a maximum value of $550,000.
Shortly after the announcement, StockerYale’s stock climbed briefly above $1 before dipping down again. The company is currently under a delisting warning from NASDAQ because it has been unable to maintain a share price of more than $1 since September. Four years ago, the was selling for more than $10 a share. – BOB SANDERS