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Note 18 - Subsequent Events
12 Months Ended
Jun. 30, 2014
Subsequent Events [Abstract]  
Subsequent Events [Text Block]

18. Subsequent Events


Recapitalization 


On September 29, 2014, the Company’s Board of Directors approved a planned recapitalization of its balance sheet in order to provide liquidity to its shareholders and to maximize shareholder value. This planned recapitalization process will be accomplished through a tender offer whereby the Company will offer to buy back up to 27,530,816 common shares from its current shareholders for a price of $1.20 per share. The repurchase will be financed through new bank loans as well as the Company’s existing cash surplus. The Company has received a commitment letter from JP Morgan Chase Bank (“Chase”) to lend up to $35 million to fund the buy back.


The new debt from Chase will be comprised of two credit facilities. The first is a five-year $10 million line of credit, secured by all assets of the Company with borrowing levels subject to borrowing base limits. The interest rate on the line of credit will be the the LIBOR rate, plus a margin of 2.5%. The second facility is a five-year term loan of up to $25 million, based upon the final financing requirements of the tender offer. The interest rate on the term loan will be the LIBOR rate, plus a margin of 3.15%. The new loans will contain certain financial covenants including a maximum leverage ratio, a maximum fixed charge coverage ratio, and minimum adjusted earnings before interest, taxes, depreciation and amortization.


Sale of Rand Secure Data Division


During September of 2014, the Company spun off its Rand Secure Data division into a separate subsidiary and sold the stock of the newly formed subsidiary for $500,000 in cash, resulting in an estimated loss of $1.1 million.