Press Release
GREENWICH, Conn. – May 30, 2007 – HALO Technology Holdings (OTCBB: HTHO) (the “Company” or “HALO”) today announced that, effective May 25, 2007, the Company completed the disposition of its Empagio unit for $16 million plus the assumption of $5.5 million in other liabilities. In addition, if Empagio is subsequently sold within the next five years, HALO will receive 10% of the proceeds of such a sale, to the extent the proceeds exceed$1 million. Out of the cash received at closing, HALO agreed to pay $12.6 million of principal to Fortress Credit Corp., leaving the Company’s senior debt outstanding at approximately $7.4 million. Additional details of the transaction can be found within the Company’s Current Report on Form 8-K, furnished to the Securities and Exchange Commission.
“As previewed during our recent third quarter conference call, we have successfully closed the sale of our Empagio unit and, concurrently, paid down a sizable portion of our Fortress debt,” stated Ron Bienvenu, chairman and chief executive officer. “We have agreed to repay Fortress the balance of the loan by the end of September and remain optimistic that, through alternative funding sources and asset monetization, we will be able to continue building our businesses. We are focused on increasing the organic growth at our DAVID, Process, ProfitKey and Kenosia subsidiaries, which we believe will lead to EBITDA improvement across the board.”
HALO Technology Holdings, Inc. is a global provider of a diversified range of standards-based enterprise software applications and on-demand solutions. HALO's strategy is to acquire and operate enterprise software companies with a commitment to sustainable growth. HALO portfolio companies focus on customer service, product quality and profitability to build long term customer relationships and ensure customer satisfaction today and into the future. Everyday, thousands of corporations and institutions from across the globe rely on our portfolio companies to deliver high quality, enterprise class software and services. For more information, please see our website at www.haloholdings.com.
Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. (the “Reform Act”). These forward-looking statements are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. The safe harbors for forward-looking statements provided by the Reform Act are unavailable to issuers of "penny stock". Our shares may be considered a penny stock and, as a result, the safe harbors may not be available to us. Such forward-looking statements include those relating to future opportunities, the outlook of customers, the reception of new products and technologies, and the success of new initiatives. In particular, statements contained in this press release that concern future operating results or other statements using words such as “anticipate,” “believe,” “could,” “estimate,” “intend,” “may,” “plan,” “project,” “should” “will,” or “set our sights on” constitute forward-looking statements and are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.In addition, such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results expressed or implied by such forward-looking statements. Such factors include: (i) demand for the Company's products; (ii) the actions of current and potential new competitors; (iii) changes in technology; (iv) the nature and amount of the Company's revenues and expenses; and (v) overall economic conditions and other risks detailed from time to time in the Company's periodic earnings releases and reports filed with the Securities and Exchange Commission, as well as the risks and uncertainties discussed in the Company's Annual Report on Form 10-KSB , and the Company’s Quarterly Reports on Form 10-QSB .