Legacy Storage Systems International Inc, the Markham, Ontario company that bought the tape drive business of the now vanished Rexon Inc, has decided that that’s about the only business it has that is worth pursuing, and it has sold its Quasarmetrics Inc subsidiary, which holds the Institute of Space & Terrestrial Science near-on-line storage systems license, and its related V1500 Network Storage Server assets, to Datavation Inc. The Institute, licensor of the V1500, has consented to the transfer of the license, surrender for cancellation of about 20,000 of its shares held in escrow, and the discharge of debt of about $86,100 owed by Legacy to the Institute for research and development services. In return, Legacy has agreed to the early release from escrow of about 54,000 shares. Datavation is controlled by one Donald Waugh, and the agreement provides for the release and sale of Waugh’s escrowed 171,400 shares and the discharge of a promissory note for about $11,200 owed by Waugh to Legacy. Waugh will pay an initial sum in cash plus the after-tax proceeds of the sale of some of the shares to Legacy, for a total of about $252,000. Additional assets relating to the V1500 system, including remaining inventory, have been delivered to Waugh for sale on a consignment basis. The deal also involves surrender to Legacy of 204,900 escrowed shares for cancellation in return for the release of 73,700 shares from escrow and discharge of a promissory note of $16,800 owing to Legacy. Legacy sees the deal as removing a major cost center from the business, reducing the number of shares out by 2.5% and, if all goes well, improving its net cash by close to $700,000. Separately, Legacy has sold the assets of its SmartArray business to Legacy Storage Systems Corp, a private company formed for the purpose. It will receive $106,000 and be relieved of outstanding warranty obligations. With the completion of the transactions, Legacy says it plans to focus on the new tape storage products that are being developed and marketed by the US company it acquired from Rexon, Tecmar Technologies Inc, and it has changed its name to Tecmar Technologies International Inc.
