SOLON, Ohio, Nov. 26, 2013 (GLOBE NEWSWIRE) -- Energy Focus, Inc. (OTCQB:EFOI), a leader in LED lighting technologies, today announced that it has sold its pool products business for a cash purchase price of $5.2 million. Energy Focus previously announced its entry into negotiations related to the sale on November 13, 2013.
Under the terms of the sale agreement, the buyer purchased substantially all of the assets associated with the pool products business and assumed certain related liabilities. The agreement also provides for an escrow of $500,000 of the purchase price that may be used toward claims under customary indemnification provisions.
"We believe the sale of the pool products business represents a milestone toward the Company's heightened effort to focus our resources solely on the LED lighting retrofit business we are aggressively pursuing," commented James Tu, Executive Chairman. "We are extremely grateful for the dedication and contribution from our staff over the years, and we wish them the best in their future pursuits," continued Mr. Tu.
"With the divestiture of the pool products business, our business initiatives are now fully aligned to retrofit existing fluorescent lighting with our energy efficient LED tubes in all interior infrastructure, be it buildings, factories or ships. The proceeds from the sale will enable us to accelerate our efforts to further strengthen our industry leading product portfolio, and expand our sales and marketing capacities as we transform Energy Focus into a trusted leader in LED lighting," concluded Mr. Tu.
Forward Looking Statements
Forward-looking statements in this report are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Generally, these statements can be identified by the use of words such as "believes," "estimates," "anticipates," "expects," "seeks," "projects," "intends," "plans," "may," "will," "should," "could," "would" and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from Energy Focus' forward-looking statements. These risks and uncertainties include, but are not limited to: the ability of Energy Focus to realize the anticipated benefits of recent changes to the sales, marketing and operating structure of its business; Energy Focus' ability to manage expenses and unforeseen adverse competitive, economic or other factors that may impact its cash position; and risks associated with raising additional funds. For more information about potential factors that could affect the financial results of Energy Focus, please refer to the Company's SEC reports, including its Annual Reports on Form 10-K and its quarterly reports on Form 10-Q. These forward-looking statements speak only as of the date hereof. Energy Focus disclaims any intention or obligation to update or revise any forward-looking statements.
About Energy Focus, Inc.
Energy Focus, Inc. is a leading provider of energy efficient LED lighting products, turnkey energy efficient lighting solutions and a developer of energy efficient lighting technology. Our solutions provide energy savings, aesthetics, safety and maintenance cost benefits over conventional lighting. Our long-standing relationship with the U.S. Government includes numerous research and development projects for the DOE and DARPA, creating energy efficient LED lighting systems for the U.S. Navy fleet.
Customers include national, state and local U.S. government agencies as well as Fortune 500 companies, the U.S. Navy, and many others. Company headquarters are located in Solon, OH, with additional offices in Nashville, TN, and the United Kingdom. For more information, see our web site at www.energyfocusinc.com.
Source:Energy Focus, Inc.