Following the completion of the sale of Xmark to Stanley, the Company will retire all of its outstanding debt. The Company expects to realize net
proceeds, after retiring its outstanding debt, paying transaction related costs and other contractual commitments, of approximately $21.4 million.
Under the terms of the Stock Purchase Agreement, $4.5 million of the proceeds will be held in escrow for a period of 12 months. The Company intends to
fund a special dividend to stockholders estimated to be at least $15 million.
Do not buy Verichip! Found this info. It looks as they will also sell the rest of their businesses as well. You will be lucky to get all of your money
back.
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The Company has also retained an investment banking firm to assist in the sale of the Company’s VeriMed Health Link business, and the possible sale
of the entire Company, after the sale of Xmark. The Company intends to propose a second, special dividend to its stockholders consisting of all of the
remaining distributable cash then held by the Company following any sale of the VeriMed Health Link business or the Company and the release of the
escrowed funds.
At the closing of the Xmark transaction, Scott R. Silverman and the Company have mutually agreed that Mr. Silverman will no longer be an officer or
director of the Company, although he will remain active as a consultant in the sale of the VeriMed Health Link business and the Company. William J.
Caragol will continue as President and Chief Financial Officer of the Company. Joseph J. Grillo, President and Chief Executive Officer of Digital
Angel, will replace Mr. Silverman as a Board Member of the Company, as its Chairman.

