CUI Global Inc (NASDAQ:CUI) announced Wednesday it has closed on a contract for the sale of its Tualatin, Oregon, headquarters for a purchase price of $8.1 million.
The company said in a press release that it entered into a lease agreement for the facility for an initial term of 10 years. Adjusting for the repayment of an outstanding mortgage on the facility, taxes and closing costs, net proceeds to CUI Global are about $4.5 million.
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"The completion of this sale leaseback transaction is aligned with our goal of utilizing non-dilutive financing methods to extend our cash runway by unlocking significant value from our real estate holdings as we continue to work diligently towards cash flow breakeven," CEO William Clough said in a statement.
He added that the leaseback eliminates disruptions to its power and electromechanical business, which is based at the facility.
The company is focused on the acquisition and development of companies, products and technologies.
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