Approximate $9-million Investment Plus Refinancing Makes Code-Alarm Debt-Free With Aggressive Plan to Expand
Detroit Technology Ventures, LLC (DTV), a venture capital fund focused on investing in and acquiring new and emerging technology businesses and undervalued industrial technology manufacturers, has announced a substantial equity investment in Code-Alarm, Inc. (OTC Bulletin Board: CODL). DTV Chairman and CEO Douglas H. Graham made the announcement today saying that the approximate $9-million investment, which is part of an overall refinancing of the company’s capital structure, will dramatically enhance the company’s balance sheet. In connection with this transaction, Mr. Graham will be joining the Code-Alarm board of directors.
Code-Alarm is a leading manufacturer of vehicle security and remote- keyless-entry and car-start products, based in Madison Heights, Mich. According to Graham, DTV will help Code-Alarm expand as a technology and knowledge-based business. “Code-Alarm has significant proprietary, patented technology that provides outstanding opportunities to expand current customer relationships and grow into new market segments,” Graham said.
“Code-Alarm has a strong product and brand name,” said Graham. “We are very excited about the leading proprietary technology the company possesses and really feel the company has tremendous potential for aggressive growth. We realized that the company was undercapitalized and needed an infusion of capital to push it to the next level. It was critical to create a clean balance sheet for Code-Alarm to position it for future growth and assure Code-Alarm customers that it is a healthy and growing company.”
Peter Stouffer, Code-Alarm president and chief operating officer, said, “Code-Alarm has, for several years, fought the battle of having a weak balance sheet. We expect the stronger financial position will breed confidence in the marketplace and will set a solid foundation for success well into the future. In addition, the capital infusion and refinancing will enable Code-Alarm to aggressively pursue the opportunities created by our proprietary sensor and control technology. We are pleased that DTV decided to make a substantial equity investment in Code-Alarm, and we are excited about being debt-free.”
Code-Alarm manufactures products for the world’s top automakers, including General Motors, Ford, DaimlerChrysler, Mitsubishi, Subaru, Honda, Kia, Toyota and Volkswagen. Its products are sold in 35 countries under the brand names of Code-Alarm(TM) and Chapman(TM). The company ended calendar year 1999 with 250 employees and $40 million in sales.
Detroit Technology Ventures is based in Bloomfield Hills, Mich. It was established by Doug Graham to help establish a “natural and necessary bridge between centers of technology such as Silicon Valley and Detroit with the purpose of combining technology with its appropriate industrial partner.”