Dynatronics To Sell Tennessee’s Manufacturing Facility For $1.75M
Medical device company, Dynatronics Corporation has agreed to sell its former manufacturing facility in Tennessee to Maple Leaf Realco II, LLC.
Per the agreement, Dynatronics (DYNT) will sell its facility in Ooltewah, Tennessee, which is spread across 3.4 acres and has a 54,000 sq. ft. building, for a price of $1.75 million. The net sale proceeds are estimated to be approximately $1.63 million. The company anticipates completing the deal before the end of fiscal 2021 (ending on June 30).
Notably, the company has shut down its operations in Tennessee in the second quarter of the fiscal year 2021 to consolidate its operations, reduce costs and improve profitability. (See Dynatronics stock analysis on TipRanks)
On Feb. 11, Maxim Group analyst Anthony Vendetti maintained a price target of $2 (72.4% upside potential) and a Buy rating on the stock. In a note to investors, the analyst said, “We do not believe that DYNT will need to raise capital before it reaches cash flow breakeven in FY22.” He added, “we are confident in the company’s ability to drive improved cash flow and profitability.”
Overall, consensus among analysts is a Moderate Buy based on 2 Buys. The average analyst price target of $2.05 implies upside potential of about 76.7% to current levels. Shares have gained about 37.4% in one year.
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