The deal with Hale Capital Partners is expected to close mid-September subject to the satisfaction of customary conditions and lender and Nasdaq approval.
Adept has the ability to issue up to an additional $1,500,000 of shares of Series A Convertible Preferred Stock to other buyers subject to certain conditions.
The firm said it intends to use the net proceeds from this sale of shares for funding growth of its mobile and packaging business and the possible reduction of its debt.
Upon completion of the sale, Martin Hale, Jr., CEO of Hale Capital Partners, will join Adept's Board of Directors and be nominated for election at the next annual stockholders meeting.
Principal market activity
Adept said their principal market activity was in the secondary packaging segment, focussed on clamshell and bag products.
It identified cost savings, sanitation, safety, and increased throughput and yield are mapping to an acceptable return on investment (ROI) for manufacturers.
John Boutsikaris, senior vice president at Adept Technology, told FoodProductionDaily.com the firms focus is on global growth.
“You can expect a broader portfolio of point solutions consistent with the market segments we are pursuing.
“Both businesses serve markets that have significant untapped need for robotic automation technology, and we believe we can satisfy those requirements.
Global plan
He added the firm has operations in Europe, Asia and the US.
“Additional investment will allow us to accelerate our position in these regions with additional support and services besides our products and solutions.
“So yes, we see a bigger customer base based on a broader reach to meet the regional needs.”
The entire food and beverage sectors are opportunity rich, and have requirements that are consistent with the performance and benefits offered by Adept PAC and SoftPIC solutions, added Boutsikaris.
“We have left a number of segments in the past because there was little innovation left to support increased investment, or the segments simply became too commoditized.
“Our long term goals are to meet our aggressive corporate objectives, and satisfy our long term shareholders.”