Acorn Energy Sells Non-Strategic Asset
MONTCHANIN, Del., April 5, 2011 -- Acorn Energy, Inc. (NASDAQ: ACFN) announced today that the company has sold its 25% interest in HangXing International Automation Engineering Co. Ltd. ("HangXing") back to the majority owner, China Aero-Polytechnology Establishment ("CAPE") for $492,000. HangXing is a value-added reseller for programmable logic controller (PLC) based industrial automation systems for steel manufacturing.
For many years HangXing was supported by loans from CAPE. HangXing is no longer strategic to ACFN, and both owners were looking to rationalize the share structure. Acorn's 25% investment of approximately $250,000 in HangXing was made in 1995, which predates the current strategic focus of Acorn Energy. Subsequently, the company recorded a non-cash charge with respect to write-off of the entire investment in 1999.
Acorn intends to use the cash to fund its current portfolio of operating companies and for general corporate purposes.
About Acorn Energy, Inc.
Acorn Energy, Inc. is a holding company focused on technology driven solutions for energy infrastructure asset management. Our four businesses in which we have controlling interests, improve the world's energy infrastructure by making it cleaner and less expensive to operate air pollution systems for coal and gas-fired power plants (CoaLogix), more secure by providing security solutions for underwater energy infrastructure (DSIT), more reliable by providing condition monitoring instruments for critical assets on the electric grid (GridSense) and more productive and efficient by increasing oil and gas production while lowering costs through use of ultra-high sensitive seismic tools for more precise pinpointing of oil and gas reservoirs (USSI). For more information visit www.acornenergy.com.