Geotek Industries Studies Option to Buy Jerico
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Geotek Industries, a Chatsworth based laser manufacturer, has a 12-month option to buy Jerico Precision Manufacturing Corp. in Yonkers, N.Y. If Geotek buys the company, terms call for Geotek to pay $100,000 in cash for Jerico’s shares and another $300,000 depending on Jerico’s financial performance. In addition, Geotek has an agreement to provide Jerico with about $1 million in financing, including a $750,000 loan and a letter of credit of $150,000 to guarantee certain debts.
In March, Geotek was spun off from Patlex, another Chatsworth company, which battled for years in courts to win claim over several key laser patents. Since winning the lawsuits, royalty income has continued to build for Patlex, and the company decided to spin off to its shareholders its laser manufacturing business.
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