Waytronx Inc. provides advanced cooling systems solutions through its wholly owned subsidiaries, CUI Inc. and CUI-Japan. Waytronx today announced it has retired $7,243,059 in debt, including $1,093,059 in accrued interest.
The company said that the previous owners of CUI entered into an Accord & Satisfaction with the company, which eliminates $4,900,000 of debt and $850,000 in accrued interest, in exchange for 1,000,000 shares of the Waytronx common stock and one-time payment of $50,000.
As a result of the agreement, Waytronx will post a related gain on debt extinguishments of $5,630,500 for the second quarter of 2010.
The company also said that two “Angel Investors” converted notes totaling $1,492,559, including $242,559 in interest, into the company’s common shares.
William Clough, Waytronx’s president and CEO, said the actions of the prior owner of CUI and the two investors, puts the company in a better financial position to move forward with its operations, product offerings and goals.
“The selfless actions of the prior owner of CUI Inc. and these two investors ensures and enhances our ability to develop our core business, while continuing to acquire and commercialize new technologies like the Digital Power Novum Digital line and the GASPT2 technology,” Clough stated in the press release.
Clough said the company plans on several forms of organic expansion and actions to improve its position in the market.
“We intend to continue our efforts to expand our product lines; form strategic alliances with companies like Power One and GL Industrial Services; increase our market share; and organically grow our business. In short, we will continue to earn the confidence and trust the elimination of this debt represents,” Clough concluded.