JanOne to sell all outstanding equity interests of ARCA Recycling to VM7

JanOne announced that on March 9 they entered into a Stock Purchase Agreement with VM7, a Delaware corporation, under which VM7 agreed to acquire all of the outstanding equity interests of ARCA Recycling, Customer Connexx and ARCA Canada. Virland Johnson, who has served as ARCA Recycling’s CFO and COO for several years is the principal of VM7. JanOne’s Board of Directors unanimously approved the sale, which reduced its liabilities on their consolidated balance sheets by $17.6M and stipulated that JanOne is to receive not less than $24M in future monthly aggregate payments over the agreement’s term. ARCA Recycling recycles household appliances by providing turnkey recycling and replacement services for utilities and other sponsors of energy efficiency programs. Customer Connexx is their Las Vegas based call center business and ARCA Canada is the Canadian arm of their appliance recycling business.