SALEM, N.H., June 16, 2016 /PRNewswire/ -- Ezenia! Inc. ("Ezenia" or the "Company") today announced that a newly formed subsidiary, Windjammer Holdings, Inc. ("WJ Holdings"), has purchased from Windjammer Communications Holdings LLC and BenMark Investments LLC 100% of the equity interests in Windjammer Communications LLC ("Windjammer Communications") as well as certain cash on hand in exchange for preferred shares in the aggregate amount of approximately $636,000 issued by WJ Holdings and 19.5% of its common stock.
The proceeds of the transaction were primarily used to pay transaction related expenses and to repay all but approximately $234,000 of the Company's outstanding indebtedness under its senior secured term loan. The Company emerged from bankruptcy in July 2015 with approximately $2 million of outstanding indebtedness under this facility. Following the transaction, the Company has approximately $120,000 in cash on its balance sheet net of accrued expenses.
Windjammer Communications is a telecommunications company which receives revenue from its ownership of a cable television system located in Virginia. In 2014 and 2015, the gross amount of revenue received by Windjammer Communications from this system was approximately $360,000 per year. The Company intends to use this revenue going forward to service its remaining debt and fund the Company's operating expenses while it continues to explore additional strategic transactions.
In addition to the consummation of the Windjammer transaction, the Company also today announced the renewal of certain of the InfoWork Space ("IWS") contracts with the Air Force held by its subsidiary, Talarc Technologies LLC. A contract in the amount of $67,550 per year was renewed and paid in March. Another in the amount of $23,950 per year is currently in the renewal process and anticipated to be collected within the next few months. The Company also received payment on a third contract in the amount of $134,846 this month.
The Company is in the process of finalizing its audited financial statements for the fiscal year ended December 31, 2015. Once complete, the Company intends to post the annual financial statements on its website for shareholders.
About Ezenia! Inc.
Ezenia! Inc. operates through its subsidiaries, Talarc Technologies LLC and Windjammer Holdings, Inc. Ezenia! Inc. common stock is not listed, traded or quoted on any U.S. stock exchange but is quoted on the OTC Pink Market under the symbol EZEN.
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SOURCE Ezenia! Inc.