SOUTHAMPTON, Pa., Nov. 27, 2024 (GLOBE NEWSWIRE) -- Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) announced that on November 26, 2024, the Company closed a transaction for the sale and lease back of demonstration equipment located in Southampton, Pennsylvania. Under the terms of the agreement the assets were sold for $4,000,000. In connection with the sale, the Company entered into an Agreement of Lease (“Lease”) with VFI Corporate Finance (“Lessor”) for Lessor to lease back to the Company all the assets sold. The assets have been leased back for an initial term of thirty (30) months (“Initial Term”) and the Lease includes specified end of initial term provisions including extending the lease for an additional year, return the equipment to the Lessor or purchase the equipment at a pre-negotiated price. Net rent expense for the lease is approximately $1,750,000 annually. The assets sold had depreciation expense of approximately $780,000 annually. The proceeds from the sale are being used for additional working capital financing to perform the approximate $100 million backlog of existing projects. “This financing provides additional working capital over our line of credit with PNC to execute the higher level of orders in our backlog,” states Robert L. Laurent, Jr., ETC’s Chief Executive Officer and President.
About ETC
ETC designs, manufactures, and sells software-driven products and services used to recreate and monitor the physiological effects of motion on humans, and equipment to control, modify, simulate and measure environmental conditions. Our products include aircrew training systems (aeromedical, tactical combat, and general), disaster management systems, sterilizers (steam and gas), environmental testing and simulation systems, and other products that involve similar manufacturing techniques and engineering technologies. ETC’s unique ability to offer complete systems, designed and produced to high technical standards, sets it apart from its competition. ETC’s headquarters is in Southampton, PA.
