Video Display Corp. Sells Subsidiary Company

The listed gross purchase and sale price was just over $6.4 million.
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Video Display Corporation (VDC), a producer of specialty niche market displays for defense, medical, commercial and industrial applications, has completed the sale of the Company's Fox International Ltd subsidiary.

VDC reported a gross purchase and sale price of just over $6.4 million, and the conditions of the closing were based upon an effective date of March 1, 2011 to coincide with the audited fiscal year end occurring on Feb. 28, 2011. The sale price is based upon the audit results of Fox International's book value of assets.

Payment of the purchase price was comprised of a combination of cash, assumption of Fox's book value of liabilities and the tender of common shares of VDC. As part of the transaction, Ron Ordway, the company’s CEO, has surrendered 400,000 shares of Video Display common shares, which will be added to the treasury shares of the company. The total number of outstanding shares of the company has been reduced from approximately 8.4 million shares to approximately 7.6 million shares outstanding as a result of the Fox International sale.