UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported) March 11, 2016
ADDVANTAGE TECHNOLOGIES GROUP, INC.
(Exact name of Registrant as specified in its Charter)
Oklahoma
(State or other Jurisdiction of Incorporation)
|
1-10799
|
73-1351610
|
|
(Commission file Number)
|
(IRS Employer Identification No.)
|
| |
|
|
1221 E. Houston, Broken Arrow Oklahoma
|
74012
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
(918) 251-9121
(Registrant's Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General InstructionA.2. below):
|
□
|
Written Communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
□
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
□
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
□
|
Pre-commencement communications pursuant to Rule 13e-4© under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 1.01 Entry Into a Material Definitive Agreement.
ADDvantage Technologies Group, Inc. (NASDAQ: AEY), today, announced that, through a joint venture, the company will support the decommission work on cell tower sites across 13 states on behalf of a major U.S. wireless provider. The joint venture, YKTG Solutions, LLC, is owned 51% by YKTG, LLC and 49% by ADDvantage Technologies Group. The joint venture is governed by an operating agreement and is limited in purpose to completing a deconstruction contract with a major U.S. wireless provider. ADDvantage Technologies Group will finance the project pursuant to the terms of a loan agreement between ADDvantage Technologies Group and YKTG Solutions. The loan will be secured by all of the assets of YKTG Solutions and YKTG, LLC. ADDvantage Technologies Group will earn a fee of 12%, before expenses, for its role in the project. This fee encompasses any interest earned under the loan agreement. ADDvantage Technologies Group expects to generate approximately $1 million in pretax income over the next year.
A copy of the press release is furnished as Exhibit 99.1 to this Current Report and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The following exhibit is furnished herewith:
|
Exhibit 99.1
|
Press Release dated March 10, 2016 issued by the Company.
|
| |
SIGNATURES
|
|
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| |
|
ADDvantage Technologies Group, Inc.
|
| |
|
Date: March 11, 2016
|
| |
|
By: /s/ Scott Francis
|
| |
|
Scott Francis
|
| |
|
Vice-President & Chief Financial Officer
|
Exhibit Index
|
Exhibit Number
|
Description
|
|
99.1
|
Press Release dated March 10, 2016 issued by the Company.
|
ADDvantage Technologies Group, Inc.
1221 E. Houston
Broken Arrow, Oklahoma 74012
|
For further information
|
KCSA Strategic Communications
|
|
Company Contact:
|
Garth Russell
|
|
Scott Francis (918) 251-9121
|
(212) 896-1250
|
|
grussell@kcsa.com
|
ADDvantage Technologies Announces Strategic Joint Venture
to Provide Deconstruction Work on Cell Towers in 13 States
- - -
Expected to generate approx. $1MM in pretax income for ADDvantage over the next year
- - -
Additional near-term opportunities expected in 2016 and 2017
BROKEN ARROW, Oklahoma, March 10, 2016 – ADDvantage Technologies Group, Inc. (NASDAQ: AEY), today announced that, through a joint venture, the Company will support the deconstruction work on cell tower sites across 13 states on behalf of a major U.S. wireless provider. This joint venture is expected to generate approximately $1 million in pretax income for ADDvantage Technologies over the next year.
The strategic joint venture, YKTG Solutions, LLC, is with YKTG, LLC (“YKTG”). Under the terms of the joint venture agreement, ADDvantage Technologies will own 49% of YKTG Solutions, LLC, while YKTG will own 51%. ADDvantage Technologies will be responsible for the financing and the accounting for the deconstruction contract. In addition, Nave Communications, a subsidiary of ADDvantage Technologies, will provide warehouse storage space to stage the decommissioned equipment on a short-term basis.
“We continue to grow our operational capabilities and increase our scale across the U.S. to drive growth in our telecom business,” commented David Humphrey, President and CEO of ADDvantage Technologies. “We are proud to announce this strategic joint venture with YKTG as it opens a new opportunity for us in the service business. We also anticipate generating additional revenues by processing decommissioned equipment received from this agreement through our recycling services program, and by selling additional equipment to this major U.S. wireless provider, utilizing our partnership with YKTG.”
“YKTG is excited to have ADDvantage Technologies as a strategic partner to work on our most recent multi-million dollar award to support the deconstruction program for a major wireless provider,” commented Roscoe C. Young II, Founder, President and CEO of YKTG. “In addition, we hope to keep our relationship with ADDvantage in place to cover other near-term opportunities we expect to be awarded from other wireless and cable providers in 2016 and 2017.”
About ADDvantage Technologies Group, Inc.
ADDvantage Technologies Group, Inc. supplies the cable television (Cable TV) and telecommunications industries with a comprehensive line of new and used system-critical network equipment and hardware from a broad range of leading manufacturers. The equipment and hardware ADDvantage distributes is used to acquire, distribute, and protect the communications signals carried on fiber optic, coaxial cable
and wireless distribution systems, including television programming, high-speed data (Internet) and telephony. In addition, ADDvantage operates a national network of technical repair centers focused primarily on Cable TV equipment and recycles surplus and obsolete Cable TV and telecommunications equipment.
ADDvantage operates through its subsidiaries, Tulsat, Tulsat-Atlanta, Tulsat-Arizona, Tulsat-Nebraska, Tulsat-Tennessee, Tulsat-Texas, NCS Industries, ComTech Services and Nave Communications. For more information, please visit the corporate web site at www.addvantagetechnologies.com.
About YKTG, LLC
YKTG, LLC is a certified minority business enterprise and serves the commercial industry to include infrastructure construction projects. YKTG's strategic approach focuses on engineering, procurement, construction and custom design builds for a wide range of solutions.
The information in this announcement may include forward-looking statements. All statements, other than statements of historical facts, which address activities, events or developments that the Company expects or anticipates will or may occur in the future, are forward-looking statements. These statements are subject to risks and uncertainties, which could cause actual results and developments to differ materially from these statements. A complete discussion of these risks and uncertainties is contained in the Company’s reports and documents filed from time to time with the Securities and Exchange Commission.
ADDvantage Technologies (NASDAQ:AEY)
Historical Stock Chart
From Mar 2024 to Apr 2024
ADDvantage Technologies (NASDAQ:AEY)
Historical Stock Chart
From Apr 2023 to Apr 2024
