Attached files
Exhibit 99.1
News Release
Brekford Completes Sale of its Vehicle Services Business to
LB&B Associates
- New Entity Launches on March 1, 2017 as “Global Public
Safety” -
HANOVER, Maryland – March 1, 2017 – Brekford
Corp. (OTCQX: BFDI), a leading
public safety and security technology service provider of fully
integrated automated traffic safety enforcement
(“ATSE”) solutions, announced that on February 28, 2017
it finalized the sale of an 80.1% stake in its vehicle services
business to LB&B Associates Inc. (“LB&B”),
headquartered in Columbia, Maryland. Proceeds from the sale were
used to retire all long-term debt of the Company, and provide
growth capital for expansion of its ATSE business, which provides
turnkey solutions to government agencies for automated enforcement
of speed, red light, and distracted driving
violations.
In keeping with the Contribution and Unit Purchase Agreement (the
“Agreement”) signed by Brekford and LB&B on
February 6, 2017, the Company contributed substantially all assets
and certain liabilities related to its law enforcement vehicle
upfitting business to Global Public Safety, LLC
(“GPS”). As of the closing on February 28, 2017,
LB&B acquired 80.1% of the units of GPS for $4 million in cash
and a $2 million promissory note that will be secured by
LB&B’s GPS units. Brekford retains ownership of 19.9% of
the units of GPS as a minority member.
“We are pleased to finalize this important transaction, which
will provide necessary growth capital for Brekford’s ATSE
business,” commented Rod Hillman, President and COO of
Brekford. “We look forward to implementing an aggressive
growth plan to provide our turnkey photo enforcement solutions to
government agencies throughout the U.S. and Latin America.
Additionally, GPS is positioned for significant expansion of its
public safety solutions business under the leadership
of LB&B. With an ongoing minority
interest in GPS, we will also assist in whatever manner requested
to help that business flourish.”
The sale is in keeping with a definitive merger agreement signed
between Brekford and Keystone Solutions, Inc.
(“Keystone”) on February 10, 2017, with a condition to
sell the vehicle upfitting business to a company with the resources
to grow the business nationally (https://www.accesswire.com/454965/Brekford-Signs-Definitive-Agreement-to-Merge-with-Keystone-Solutions-Inc.).
LB&B has been in business since 1992, and currently operates
nationwide providing diversified services such as facilities
management, transportation and distribution, security, simulation
systems support and training, and base operations support for both
federal government and private sector clients.
About Brekford Corp.
Brekford Corp. provides state-of-the art automated traffic
enforcement solutions to municipalities, and other public safety
agencies throughout the United States. Its services include
automated speed, red light, and distracted driving camera
enforcement programs. Brekford's combination of automated traffic
enforcement services with a longstanding background and foundation
in public safety solutions offers a unique 360-degree solution for
law enforcement agencies and municipalities.
The Company is headquartered in Hanover, Maryland, and its common
stock is traded on the OTC Markets under the symbol "BFDI."
Additional information on Brekford can be accessed online at
www.brekford.com.
About LB&B Associates Inc.
LB&B Associates Inc. is a diversified services company
operating in over twenty-five states, the District of Columbia, and
overseas locations. Its services include facilities management,
operations and maintenance, logistics support, simulation systems
support and training, base operations support, and commercial
support. More than 1,000 associates nationwide have provided a
broad range of services to federal agencies, state governments,
commercial businesses, the military, NATO, hospitals, churches,
research centers, and educational facilities. Key customers include
the U.S. Navy, Air Force, Army, Marine Corps, GSA, National
Archives, CMS, and DHS.
LB&B is headquartered in Columbia, Maryland. Additional
information can be accessed online at www.lbbassociates.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of that term in Section 21E of the Securities Exchange Act
of 1934, as amended. Words such as "anticipate," "expect,"
"project," "intend," "plan," "believe," "target," "aim," "should,"
and words and terms of similar substance and any financial
projections used in connection with any discussion of future plans,
strategies, objectives, actions, or events identify forward-looking
statements. Forward-looking statements include, among others, those
concerning our expected financial performance and strategic and
operational plans, as well as all assumptions, expectations,
predictions, intentions or beliefs about future events. These
statements are based on the beliefs of our management as well as
assumptions made by and information currently available to us and
reflect our current views concerning future events. As such, they
are subject to risks and uncertainties that could cause our results
to differ materially from those expressed or implied by such
forward-looking statements. Such risks and uncertainties include,
among many others: the risk that any projections, including
earnings, revenues, expenses, synergies, margins or any other
financial items that form the basis for management's plans and
assumptions are not realized; a reduction in industry profit
margin; requirements or changes affecting the business in which we
are engaged; our ability to successfully implement new strategies;
operating hazards; competition and the loss of key personnel;
changing interpretations of generally accepted accounting
principles; continued compliance with government regulations;
changing legislation and regulatory environments; and the general
volatility of the market prices of our securities and general
economic conditions. Readers are referred to the documents filed by
Brekford Corp. with the SEC, specifically the Company's most recent
reports filed on Form 10-K and Forms 10-Q, which further identify
important risks, trends and uncertainties which could cause actual
results to differ materially from the forward-looking statements in
this press release. Brekford Corp. expressly disclaims any
obligation to update any forward-looking statements.
Company
contact:
Rod
Hillman, President and COO
(443)
557-0200
investors@brekford.com