Alanco
and
ORBCOMM
Inc.
$2.25
Million
Equity
Investment
and
Agreement
to
Develop
New
Satellite-Based
Products
Apr
07,
2010
Alanco
Technologies,
Inc.
/quotes/comstock/15*!alan/quotes/nls/alanand
ORBCOMM
Inc.
/quotes/comstock/15*!orbc/quotes/nls/orbc
announced
a
major
strategic
investment
by
ORBCOMM,
a
global
satellite
data
communications
company
focused
on
two-way
Machine-to-Machine
(M2M)
communications
and
leading
provider
of
space-based
Automatic
Identification
System
(AIS)
services.
ORBCOMM
purchased
500,000
shares
of
Alanco
Series
E
Convertible
Preferred
Stock
for
a
total
investment
of
$2,250,000
($4.50
per
preferred
share
convertible
into
12
common
shares),
and
entered
into
a
Product/Software
Development
Cooperation
Agreement
for
Alanco's
StarTrak
Systems
subsidiary
to
develop,
manufacture
and
market
new
products
featuring
dual-mode
cellular
and
ORBCOMM
satellite
communications
capabilities,
to
operate
over
the
global
ORBCOMM
communications
networks.
Robert
Kauffman,
Alanco
Chairman
&
CEO,
commented,
"This
strategic
partnership
with
global
wireless
communications
leader
ORBCOMM
Inc.
represents
a
major
milestone
towards
achieving
our
growth
objectives.
We
welcome
ORBCOMM
as a
significant
new
Alanco
shareholder,
as
their
$2.25
million
investment
significantly
enhances
our
overall
financial
strength
and
industry
competitive
position.
The
Product/Software
Development
Cooperation
Agreement
will
serve
to
accelerate
StarTrak's
growth
in
both
its
primary
refrigeration
transportation
business
and
new,
large
potential
market
applications
such
as
aftermarket
construction
equipment
monitoring.
We
are
also
looking
forward
to
cooperative
development
of
new
international
opportunities
through
ORBCOMM's
extensive
global
network."
"The
new
product
development
program
will
greatly
enhance
StarTrak's
continuing
efforts
in
providing
strong
ROI-driven
applications
to
global
customers
via
best-in-class
communications
networks,"
said
Tim
Slifkin,
President
and
Founder
of
StarTrak.
"We
are
positioning
our
products
and
services
to
take
advantage
of
the
ORBCOMM
satellite
network's
next
generation
constellation
and
cost-effectiveness."
Marc
Eisenberg,
ORBCOMM
Chief
Executive
Officer,
added,
"In
recent
years,
StarTrak's
innovative
wireless
monitoring
technology
has
achieved
refrigeration
transport
industry
leadership
and
StarTrak
has
grown
to
become
a
solid
customer
for
ORBCOMM
communication
services,
both
GSM
and
satellite.
We
now
look
forward,
as a
significant
new
shareholder
and
active
partner,
to
assist
in
accelerating
StarTrak
product
deployments
and
the
associated
ORBCOMM
service
revenues."
