Nortech Systems Incorporated (NSYS) was up more than 40% at last check on Friday trading. The electronics components company was up $1.60 at $5.56 from the previous closing price of $3.96.
After close of the market on Thursday, Nortech announced a sale and leaseback transaction worth $6.3 million. The transaction involved two of its facilities in Minnesota at Mankato and Bemidji. The company intending utilizing the sale proceeds to mainly lessen its debt burden and affiliated expenses. Other utilization of the funds has planned to be paying the taxes down.
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The company closed the sale deal by signing an agreement for both of its Minnesota based facilities. As per the agreement company would initially lease those two facilities for a longer term. The lease tenor would initially be of 15 year with several options to renew that agreement.
President and Chief Executive Officer of Nortech, Jay D. Miller was excited upon completion of the deal. He said that the sale and leaseback agreement would result in generation of plenty of cash for the company. He also shared the company’s priority to utilize those proceeds. He said that same would be used to repay the debts. Funds so generated would also be used to realign the financial position of the company. And this will help the company to confidently invest in capital equipments and make aggressive business strategies.
Nortec, for long, have collaborations with companies in industrial, medical and defense sectors. That made the company innovative, quick and intelligent enough to do business globally. And offer its professional expertise so gained to provide customers with manufacturing as well as engineering solutions.
Services provided by Nortech make its clients to be able to lead their peers in different goals. Nortech also help its clients to be sound in data management and digital abilities to achieve their targets smoothly.
Nortech makes every effort to be foremost choice for its customers. The company also strives to further strengthen its collaboration internally as well as in communities where it works, Miller said.