Byrna Technologies Inc. shares declined 14% to $7.91 after the company said it has sold the intellectual property and tooling underlying its legacy 40mm business to Canada’s Facta Global.
The non-lethal personal security solutions company didn’t disclose the sum of the sale but said it included both cash and future royalty payments to Byrna on all 40mm BIP’s sold globally. Byrna said it will retain the exclusive rights to sell the 40mm BIP in the U.S. and South Africa.
Chief Executive Bryan Ganz said it makes sense for Facta to acquire ownership of the BIP since law enforcement is 100% of its business versus only a few percent of Byrna’s. He said it allows Byrna to shed an asset on its balance sheet that it wasn’t using while receiving a lump sum cash payment and stream of royalty income for the next eight years.