Industrial Services of America, Inc. (ISA), a Louisville, Ky.-based recycling company, has entered into an agreement to acquire two parcels of property adjacent to its facilities in Louisville, Ky. from the Harry Kletter Family Partnership LLC. The transactions have been approved by the Audit Committee and the company’s board of directors.
The property will be acquired in exchange for 500,000 shares of the company’s common stock, making the value of the transaction $3.2 million based on $6.40 per share as stated in the agreement. The cost of the transactions will change if the average stock price over the 30-day period prior to the anticipated closing in August changes. The property had been appraised by an independent appraiser at a value of $3.2 million. The transactions are subject to the results of ISA’s due diligence investigation and to the approval of a majority of holders of the company’s outstanding shares of common stock.
“We feel fortunate to have secured the right to acquire this property without the expenditure of any cash, but instead using shares that were trading substantially lower earlier this year,” says Brian Donaghy, ISA’s president and chief operating officer.
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