Noble Iron Inc. (TSXV:$NIR) announced that it has entered into a binding agreement to sell its Houston, Texas, equipment sales and rental business. Pursuant to the Agreement, the Company has sold all of its Noble Rents Inc., which operates the Houston operations, to an arm’s length third party. Noble Iron will continue to operate and grow its equipment rental and sales operations in Southern California and other regions, as well as its software platform, Texada Software.
The purchase price for the Houston business is US $6. 24 million. As part of the transaction, the purchaser has assumed an existing asset-backed credit facility in the principal amount of US $5.63 million. The net proceeds to the Company are US $0.61 million, of which US $0.5 million is in cash and US $.11 million in the form of an unsecured promissory note, due November 2017 at an interest rate of 3% per annum.
Noble Iron’s Founder, Chairman and CEO, Nabil Kassam said, “In consideration of the current state of Houston’s challenged, economy and the relatively small size of our Houston equipment operations, we feel this sale is positive as it is an opportunity to reduce outstanding debt and to better position us to focus on scaling our software and equipment logistics and fulfillment operations in Southern California as we enter into 2017. We at Noble Iron are committed to executing our goal of offering regional construction professionals the most comprehensive selection of equipment and services on-demand, because of a synergistic combination fo our logistics infrastructure, equipment service capability, shared asset marketplace, and state-of-the-art software.”
Noble Iron Inc., is a technology company that offers On-Demand construction equipment, and software applications to equipment owners and users to manage their equipment’s lifecycle. The company operates in equipment rental, equipment sales, and software for construction and industrial equipment users and owners.
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