Monday, November 17, 2008

Implant Sciences sells unit to management for $3M

By Mass High Tech Staff

Wakefield-based security component maker Implant Sciences Corp. reports that its wholly owned subsidiary, C Acquisition Corp., which operates under the name Core Systems, has been sold to the group’s management in a $3 million deal.

The buyer in the deal is a new entity formed by Core Systems’ general manager, who is not named in the announcement, and other investors. The group has made an initial deposit of $250,000 on the California-based Core Systems corporate entity, with the balance of the transaction to include $1.25 million in cash to be paid at the closing of the deal in November, and a $1.5 million promissory note to be issued in December.

Implant Sciences (NYSE: IMX) has been gradually shedding parts of its business since the beginning of the year. In the spring it sold its brachytherapy products business to Best Medical International Inc. Around the same time it sold its medical coatings business, including coating equipment, for $750,000 to an unnamed buyer.

According to CEO Phillip Thomas, the sales are part of an overall strategy to streamline Implant Sciences by shedding its non-strategic business and focus on the firm’s security products business.

In the company’s recent quarterly report, revenue from the Implant Sciences’ security products increased 341 percent in the third quarter, up to $5.3 million from $1.2 million during the same quarter in 2007.