General Automation Inc now has definitive agreement for Sanderson Electronics plc for the Sheffield, Yorkshire company to lend the Anaheim Pick popper $1.75m in return for warrants that on full conversion and exercise of warrants would give Sanderson 51% of General Automation, conversion price being set at 70 cents per share. Sanderson shareholders will have to approve the agreement at an extraordinary meeting later this month. The loan will be in return for $1.75m of con vertible notes, and Sanderson authorised and made an advance of $500,000 on the loan on Friday. With the warrants for 2.9m new shares, Sanderson will be in for $4m altogether for the 51% of the General, which also says it is cutting its annual operating expenses by over $2m in the US and the UK – presumably by mak ing significant layoffs though that it not specified.
