Alanco Technologies, Inc. (ALAN) announced its new strategic partnership with ORBCOMM Inc. (ORBC), in which the global satellite data communications company plans to buy a $2.25 million equity stake in Alanco for the development of new satellite-based products.
ORBCOMM has purchased 500,000 shares of Series E Convertible Preferred Stock, for a total of $2.25 million, a price of $4.50 per preferred share, which can be converted into 12 common shares.
The investment is aimed at the development of new products which feature dual-mode cellular and ORBCOMM satellite communications capabilities. These will operate over ORBCOMM communications networks.
“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,” said Robert Kauffman, Alanco Chairman & CEO, in a statement. “We are also looking forward to cooperative development of new international opportunities through ORBCOMM's extensive global network."
Shares of Alanco rose 31.62%, or 11.1 cents a share, to close the session Friday at 46 cents a share, but the stock was down 10 cents, or 21.74%, in after-hours trading. Shares of ORBCOMM were flat on Friday, ending the day at $2.19 a share.