Qumu Receives $9.7 Million in Cash from Sale of BriefCam Stock
Summary
MINNEAPOLIS--(BUSINESS WIRE)--Qumu (NASDAQ: QUMU), the leading provider of best-in-class video technology for the enterprise, received approximately $9,678,000 in cash on July 6th of 2018 from the sale of its stake in BriefCam Ltd., a provider of security and intelligence video review software recently acquired by Canon Inc. Today, Qumu announced it will use $6.5 million of the proceeds to pay down its current debt facility with ESW Capital, LLC (through its ESW Holdings, Inc. subsidiary), with no pre-payment penalty. The principal payment will reduce annualized interest expense by approximately $642,000 per year, excluding amortization of debt issuance costs. “Qumu has a stronger balance sheet with significantly reduced debt and the working capital to invest in our growth. And as noted previously, the company will incur no penalties for this or future pre-payments with proceeds from the BriefCam sale, as part of its loan agreement with ESW. Backed by the most trusted and experienced team in the industry, the Qumu platform enables global organizations to drive employee engagement, increase access to video, and modernize the workplace by providing a more efficient and effective way to share knowledge.
