WaveDancer confirmed the sale of Gray Matters, its blockchain-enabled supply chain management software subsidiary, to Gray Matters Data Corporation. The lead investor of this is venture capital firm StealthPoint, LLC.
StealthPoint and its investors have committed to investing $3 million in cash in Gray Matters Data Corporation. It also has the option to invest another $1 million within 90 days of the deal.
WaveDancer retains a 20% indirect investment in Gray Matters Data Corporation. It also gets $1 million of cash from the deal, as well as $4 million in annual contingent payments over the next seven years.
What This Means for WAVD Stock
In the same news release, WaveDancer announced that it had retained B. Riley Securities as an advisor. This has the company seeking to explore strategic alternatives. That may include a merger or sale of the company.
Jamie Benoit, CEO of WaveDancer, said the following about this:
“In addition to improving cash flow, the sale of GMI provides the Company with a cash infusion that will allow us to consider a range of options that would have otherwise been foreclosed. Now that we’ve eliminated the risk and expense of commercializing new technology, we can evaluate various strategic alternatives including a business combination or a sale.”
WAVD stock is down 7.4% as of Wednesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.