Cadence Innovation has agreed to the sale of its interests in a Czech corporation “Cadence Bohemia” to Magna Presstec AG. Unfortunately, no dollars from this sale will find there way to Cadence Innovation.

Cadence holds its interest equity interest in Cadence Bohemia through two intermediate Dutch Corporations.

The sale will not result in any contribution to the reduction of the debts of Cadence. The cash portion of the sales price is approximately $11,550,000 and the debts of the intermediate corporations exceed $40,000,000. We are unable to determine determine how far “under water” the sales price is. In addition to the cash portion of the purchase price, Magna is assuming an obligation to pay off amounts due under a credit facility “for which Cadence Bohemia is a borrower”.