Digital Angel sells its Verichip stake to its former CEO and Chairman:
Digital Angel Agrees to Sell Its Stake in VeriChip Corporation
Thursday November 13, 9:46 am ET
VeriChip Shares and Related Assets Sold for Approximately $1.57 Million in Cash
SO. ST. PAUL, Minn.--(BUSINESS WIRE)--Digital Angel (NASDAQ:DIGAD - News), an advanced technology company in the field of animal identification and emergency identification solutions, announced today that it has entered into a set of agreements to sell its approximately 45% stake in VeriChip Corporation, certain related assets and lease payments for about $1.57 million in cash. Of this amount, Digital Angel expects to retain approximately $420,000, with the balance to be applied to debt repayment.
Under the stock purchase agreement, Digital Angel sold all of its VeriChip stock, approximately 5.4 million shares, to R&R Consulting Partners, a company controlled by Scott Silverman. Under the asset purchase agreement, Digital Angel sold or assigned to VeriChip Corporation certain assets limited to the operation of the human implantable RFID business, including certain patents and other intellectual property, inventory and supplier arrangements. Further details of the transactions are set forth in the Company’s Form 8-K filing.
Joseph J. Grillo, Chief Executive Officer of Digital Angel, commented, “The completion of these transactions represents a major milestone for Digital Angel, enabling us to monetize our VeriChip holdings and to entirely divest ourselves of participation in a development stage business that, we believe, was going to require substantial investment to achieve success. We remain committed to our two core businesses, Animal ID and Emergency ID, and we look forward to devoting all of our resources towards the growth of those businesses.”
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