Good news for Orban/CRL.
Audio processing manufacturer Circuit Research Labs Inc. said it closed on a purchase agreement with Harman Pro North America which constitutes final settlement of the sale of Orban Inc., first announced seven years ago.
On July 13, CRL paid $1.5 million cash for its promissory notes and shares owned by Harman Pro North America. The buyout was funded by Jayson Russell Brentlinger, father of President/CEO Jay Brentlinger.
The aggregate remaining balance of notes repurchased was $3.2 million. The 1.6 million shares repurchased were about 18.9% of outstanding CRLI shares.
“Under the terms of the purchase agreement, Harman transferred promissory notes made by CRLI totaling $2.3 million plus unpaid interest, the shares of common stock owned by Harman, and promissory notes totaling $1 million made by C. Jayson Brentlinger in connection with an earlier purchase by Mr. Brentlinger of 2,104,000 shares of CRLI stock then owned by Harman in April 2005,” the company stated.
The two sides had been cooperating in CRL’s efforts to pay off its obligations for the purchase of Orban. In 2003 Harman and CRL announced an agreement to restructure the debt, one that involved a five-year schedule of payments and which, at the time, made Harman a 19-percent shareholder in the manufacturing company.
The younger Brentlinger saluted Harman for working with him and CRL over seven years. “I can’t say enough about the professionalism of the Harman team, they have always been very honest and fair in all our many different transactions.”