More news from Mace
I'll have a more detailed report later, but here are some highlights of the news, which has been plentiful, coming out of Horsham, Pa., home of Mace Security International.
First, Mace has settled its legal disputes with former CEO Louis Paolino. Here's the filing on that. It's agreed to pay him $4.6 million, $2.3 million of which was paid on Nov. 1. The remaining $2.3 million will be paid Dec. 31, 2010. The filing says that to ensure the second payment, Mace gave Paulino "collateral ... in the form of a first mortgage lein on one of the Company's Texas car washes and a security interest in the Company's [Mace] personal defense spray business.
It also released its Q3 financial results, where it realized a 9 percent growth in revenues ($373,000) in Q3, which ended Sept. 30, compared to Q2. Gross profits increased by about 16 percent ($200,000) for the same period.
Also, Mace continues to shed its non-security businesses, with the Nov. 11 agreement to sell its Linkstar subsidiary, a business which Andrew Shapiro of Lawndale Capital, called back in September, an "absolutely horrible and overpaid for acquisition. If you have been following Mace for long, you may recall that Linkstar was acquired against our wishes right in the middle of our proxy fight to remove Paolino directors. The acquisition of Linkstar was a Paolino deal and rubber stamped by his board, not the current team. It has been a horrible distraction for the new management team."