Cyren Announces Non-Binding LOI to Sell Iceland-Based Anti-Malware Business Assets

Rhea-AI Summary

Cyren (NASDAQ:CYRN) announced a non-binding letter of intent with Opin Kerfi (OK) to sell its Iceland-based anti-malware business assets, including technology and related IP. The purchase price remains undisclosed. This move follows a significant workforce reduction due to liquidity issues, and aims to ensure continued access to anti-malware products for existing customers under new ownership. The completion of the sale depends on due diligence and a definitive purchase agreement, with potential court approvals required due to Cyren's financial difficulties. There are no guarantees a transaction will materialize.

Positive

• Potential monetization of anti-malware business assets.
• Continued product support for existing customers through OK's partnership with former Cyren team members.

Negative

• Liquidity challenges leading to significant workforce reductions.
• Completion of sale contingent on due diligence and potential court approval due to anticipated insolvency protection.

MCLEAN, VA / ACCESSWIRE / February 21, 2023 / Cyren (NASDAQ:CYRN), a provider of threat detection solutions, today announced it has entered into a non-binding, non-exclusive letter of intent (LOI) with Opin Kerfi (OK) to sell certain of its Iceland-based assets associated with Cyren's anti-malware business, including products, technology and related IP. The purchase price was not disclosed.

Cyren previously announced a global reduction of substantially all of its workforce due to liquidity challenges. The sale of the anti-malware business assets to OK is an asset monetization opportunity for Cyren that would enable Cyren's anti-malware customers continued access to Cyren's anti-malware products and support under new ownership. OK has partnered with former members of Cyren's Iceland-based anti-malware team in order to provide ongoing product development and support services with the goal of minimizing disruption to existing Cyren anti-malware customers.

The completion of a transaction is contingent upon several factors including satisfactory due diligence and the execution of a definitive asset purchase agreement. In view of Cyren's liquidity challenges, the transaction may also be subject to court approvals following any filings for insolvency protection which are anticipated. As the LOI is non-binding, there can be no assurance that a transaction will be completed.

Cautionary Statements Regarding Forward-Looking Information

Certain statements in this communication constitute "forward-looking statements" within the meaning of the federal securities laws. These statements are based on management's current opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results. These forward-looking statements are only predictions, not historical fact, and involve certain risks and uncertainties, as well as assumptions. Actual results, levels of activity, performance, achievements and events could differ materially from those stated, anticipated or implied by such forward-looking statements. While the Company believes that its assumptions are reasonable, it is very difficult to predict the impact of known factors, and, of course, it is impossible to anticipate all factors that could affect actual results. There are many risks and uncertainties that could cause actual results to differ materially from forward-looking statements made herein including the risks discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 and the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2022 filed with the SEC, as well as other factors described from time to time in the Company's filings with the SEC. Such forward-looking statements are made only as of the date of this communication. The Company undertakes no obligation to publicly update or revise any forward-looking statement because of new information, future events or otherwise, except as otherwise required by law. If it does update one or more forward-looking statements, no inference should be made that the Company will make additional updates with respect to those or other forward-looking statements.

Investor Contact

Brian Dunn
General Counsel
Cyren
brian.dunn@cyren.com

SOURCE: Cyren Ltd.

View source version on accesswire.com:
https://www.accesswire.com/740199/Cyren-Announces-Non-Binding-LOI-to-Sell-Iceland-Based-Anti-Malware-Business-Assets

FAQ

What is the recent announcement by Cyren regarding its assets?

Cyren announced a non-binding letter of intent to sell its Iceland-based anti-malware business assets to Opin Kerfi.

What are the implications of Cyren's sale of its anti-malware business?

The sale aims to provide continued access to anti-malware products for customers despite Cyren's liquidity challenges.

What does the non-binding LOI mean for Cyren's future?

The non-binding LOI indicates that while negotiations are in progress, there is no guarantee that a sale will ultimately occur.

How is Cyren handling its financial difficulties?

Cyren has reduced its workforce substantially and is pursuing asset monetization to improve liquidity.

What factors could affect the completion of the sale of Cyren's assets?

The completion depends on due diligence, execution of a definitive agreement, and potential court approvals due to expected insolvency.