San Diego, California-based SureBeam Corporation today [Tuesday] announced that it completed on 13 February the exchange of all of its US$75m of debt with its parent company, Titan Corporation, in accordance with an October 2001 agreement between the two companies.
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Under the terms of the agreement, Titan exchanged all of SureBeam’s US$75m debt for SureBeam common stock at an average price of US$9.54 per share. On 17 October 2001, Titan announced that its Board of Directors had adopted a definitive plan to spin off SureBeam in the form of a tax-free stock dividend to Titan shareholders. The equity Titan received as a result of this exchange is planned to be included in that tax-free stock dividend to Titan shareholders.
Larry Oberkfell, SureBeam’s president and CEO, said: “Removing virtually all of SureBeam’s debt with Titan is a major financial benefit for us as we prepare to spin off from Titan.
“The execution of the debt to equity exchange leaves SureBeam essentially debt-free at this time, giving us greater flexibility and more financial strength.”
Similar to a microwave oven, SureBeam(R) technology uses ordinary electricity as its energy source to irradiate and eliminate with ionizing energy harmful bacteria – such as e.coli, listeria, and salmonella – thereby enhancing a food’s quality and extending its shelf life. SureBeam processed ground beef and fruit products are already sold across the nation in thousands of supermarkets, as well as by home delivery, direct mail, and through food service.
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