SEC Company Response from ROBOCOM SYSTEMS INTERNATIONAL INC (CIK 0001039757) — Sep 15, 2005
ROBOCOM SYSTEMS INTERNATIONAL INC (CIK 0001039757)
Date: Sept. 15, 2005 · CIK: 0001039757 · Accession: 0001169232-05-004575
AI Filing Summary & Sentiment
Referenced dates: September 7, 2005, September 9, 2005
Show Raw Text
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.txt
<TEXT>
ERIC M. HELLIGE
DIRECT TEL: 212-326-0846
DIRECT FAX: 212-798-6380
ehellige@pryorcashman.com
September 13, 2005
VIA FACSIMILE - (202) 942-9542
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C. 20549
Attention: Ms. Maryse Mills-Apenteng
Re: Robocom Systems International, Inc.
Preliminary Schedule 14A
Filed on August 26, 2005
Form 10-KSB for the years ended May 31, 2004 and 2005
File No. 0-22735
Dear Ms. Mills-Apenteng:
Thank you for taking the time last week to answer our questions regarding
the Staff's letter dated September 7, 2005 relating to the above-referenced
preliminary proxy statement on Schedule 14A (the "Proxy Statement"). Our client,
Robocom Systems International, Inc. (the "Company"), intends to file with the
Securities and Exchange Commission (the "Commission") Amendment No. 1
("Amendment No. 1") to the Proxy Statement on Schedule 14A containing its
responses to the Staff's comment letter. In an effort to focus our responses in
Amendment No. 1, we have set forth below our proposed responses to the
Commission's comments along with a copy of Amendment No. 1 which is marked to
show the proposed changes to the Proxy Statement. The numbered responses below
correspond to the numbered paragraphs of the Staff's letter. Capitalized terms
not otherwise defined in this letter have the meanings ascribed to them in the
Proxy Statement.
Responses
1. We understand that the responses set forth the Company's letter dated
September 9, 2005 to Kathleen Collins of the Commission were acceptable to
the Commission.
2. The Company acknowledges the Staff's comment and has revised the Proxy
Statement to include as Annex C the unaudited, pro forma balance sheet and
statement of operations
<PAGE>
Securities and Exchange Commission
September 13, 2005
Page 2
for its fiscal year ended May 31, 2005 which gives effect to the asset
sale as if it was consummated on June 1, 2004 (the beginning date of the
period covered by the pro forma financial statements).
3. The Company confirms that Avantce RSI, LLC is not an affiliate of the
Company. Amendment No. 1 contains the appropriate disclosure in "Questions
and Answers about the Special Meeting", the "Summary Term Sheet" and the
section titled "Information about the Buyer" under Proposal No. 1.
4. The requested Summary Term Sheet and pro forma financial information have
been added to Amendment No. 1 in response to this comment. With regard to
the Staff's request to provide historical information regarding the
business being sold, the Company notes that it is selling all of its
business and believes that the incorporation by reference of its Annual
Report on Form 10-KSB for the fiscal year ended May 31, 2005 satisfies
this requirement.
5. Additional disclosure has been added to the section titled "Background of
the Asset Sale" under Proposal No. 1 in response to this comment.
6. Additional disclosure has been added to "Questions and Answers about the
Special Meeting", the "Summary Term Sheet" and the section titled "Use of
Proceeds of the Asset Sale" under Proposal No. 1 to clarify that no
dividend has been declared in connection with the asset sale and that
there can be no assurance that the Company's board of directors will
declare a dividend in the future.
7. Additional disclosure has been added to "Questions and Answers about the
Special Meeting", the "Summary Term Sheet" and the section titled
"Business of the Company Following the Asset Sale" under Proposal No. 1 to
indicate that the Company has no current commitments or agreements to
pursue any particular transaction or strategy following the consummation
of the asset sale.
8. Additional disclosure has been added to "Questions and Answers about the
Special Meeting", the "Summary Term Sheet" and the section titled
"Purchase Price" under Proposal No. 1 to clarify that there are no other
purchase price adjustments and that the Company anticipates that it will
have working capital on the closing date in excess of the target amount,
although there can be no assurance of any such excess.
9. The disclosure in the section titled "Treatment of Outstanding Options"
under Proposal No. 1 has been revised to indicate that outstanding options
to purchase the Company's common stock will remain outstanding on the same
terms following the consummation of the asset sale.
<PAGE>
Securities and Exchange Commission
September 13, 2005
Page 3
10. The Company acknowledges the Staff's comment. The Company understands that
no specific change to the Proxy Statement is required as a result of this
comment.
The Company acknowledges that (i) it is responsible for the adequacy and
accuracy of the disclosure in its filings; (ii) Staff comments or changes to
disclosure in response to Staff comments do not foreclose the Commission from
taking any action with respect to the Company's filings; and (iii) the Company
may not assert any Staff comments as a defense in any proceeding initiated by
the Commission or any person under the federal securities laws of the United
States.
The Company believes it has fully responded to the comments of the
Commission. We hereby respectfully request that the Staff review our proposed
responses on an expedited basis. If the Commission has any questions or further
comments, the Company respectfully requests that such comments be directed to
the undersigned as soon as practicable as the Company would like to file
Amendment No. 1 by the close of business on Wednesday, September 14, 2005, and
begin mailing it definitive proxy statement to shareholders not later than
Friday, September 16, 2005.
Very truly yours,
/s/ Eric M. Hellige
Eric M. Hellige
cc: Mr. Irwin Balaban, Chief Executive Officer
Eisner & Lubin LLP
<PAGE>
As filed with the Securities and Exchange Commission on September 13, 2005
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a)
of the Securities Exchange Act of 1934
AMENDMENT NO. 1
----------
Filed by the Registrant |X|
Filed by a Party other than the Registrant |_|
Check the appropriate box:
|X| Preliminary Proxy Statement
|_| Confidential, for the use of the Commission only (as permitted by Rule
14a-6(e)(2))
|_| Definitive Proxy Statement
|_| Definitive Additional Materials
|_| Soliciting Material Pursuant to ss.240.14a-12
----------
ROBOCOM SYSTEMS INTERNATIONAL INC.
(Name of Registrant as Specified in Its Charter)
(Name(s) of Person Filing Proxy Statement, if Other than Registrant)
----------
Payment of Filing Fee (Check the appropriate box):
|X| No fee required
|_| Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
(1) Title of each class of securities to which transaction applies:
(2) Aggregate number of securities to which transaction applies:
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which
the filing fee is calculated and state how it was determined):
(4) Proposed maximum aggregate value of transaction:
(5) Total fee paid:
|_| Fee paid previously with preliminary materials:
|_| Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-1l(a)(2) and identify the filing for which the offsetting fee was
paid previously. Identify the previous filing by registration statement
number, or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
(2) Form, Schedule or Registration Statement No.:
(3) Filing Party:
(4) Date Filed:
<PAGE>
ROBOCOM SYSTEMS INTERNATIONAL INC.
NOTICE OF SPECIAL MEETING OF
SHAREHOLDERS TO BE HELD ON OCTOBER 11, 2005
September __, 2005
To Our Shareholders:
Notice is hereby given that a special meeting of shareholders of Robocom
Systems International Inc., a New York corporation (referred to herein as "we"
or "us"), will be held in the Executive Conference Room of our corporate offices
located at 511 Ocean Avenue, Massapequa, New York 11758, on October 11, 2005, at
10:00 a.m., local time, for the following purposes:
1. To approve the proposed sale of substantially all of our assets to
Avantce RSI, LLC pursuant to the asset purchase agreement annexed to
the accompanying proxy statement.
2. To transact such other business as may properly come before the
special meeting and any adjournments thereof.
The foregoing items of business are more fully described in the proxy
statement accompanying this notice.
Our board of directors has fixed August 19, 2005 as the record date for
the determination of our shareholders entitled to notice of, and to vote at, the
special meeting. A list of such shareholders will be available for examination
by a shareholder for any purpose germane to the special meeting during ordinary
business hours at our corporate office located at 511 Ocean Avenue, Massapequa,
New York 11758, during the ten (10) business days prior to the special meeting
and during the special meeting.
Whether or not you plan to attend the special meeting, you should
complete, sign, date and promptly return the enclosed proxy card, to ensure that
your shares will be represented at the meeting. If you attend the special
meeting and wish to vote in person, you may withdraw your proxy and vote in
person. You should not send any certificates representing stock with your proxy
card.
For the Board of Directors
Irwin Balaban
Chairman of the Board
and Chief Executive Officer
<PAGE>
TABLE OF CONTENTS
QUESTIONS AND ANSWERS ABOUT THE SPECIAL MEETING ........................... i
SUMMARY TERM SHEET ........................................................ v
INFORMATION CONCERNING SOLICITATION AND VOTING ............................ 1
Record Date and Voting Securities ...................................... 1
Revocability of Proxies ................................................ 1
Voting and Solicitation ................................................ 1
Quorum; Abstentions; Broker Non-Votes .................................. 2
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS ......................... 2
PROPOSAL NO. 1 TO APPROVE THE PROPOSED ASSET SALE ......................... 3
General ................................................................ 3
Background of the Asset Sale ........................................... 3
Information about the Buyer ............................................ 4
Our Reasons for the Asset Sale ......................................... 5
Summary of the Terms of the Asset Purchase Agreement ................... 6
Assets to be Sold ...................................................... 6
Obligations to be Assumed by Avantaee .................................. 7
Purchase Price ......................................................... 7
Indemnification ........................................................ 8
Termination ............................................................ 8
Other Terms ............................................................ 8
Interests of our Directors and Executive Officers ...................... 9
Regulatory Approvals ................................................... 9
Use of Proceeds from the Proposed Asset Sale ........................... 10
Business of the Company Following the Asset Sale ....................... 11
Material United States Federal Income Tax Consequences ................. 11
Treatment of Outstanding Stock Options ................................. 12
Appraisal Rights ....................................................... 12
Vote Required and Board Recommendation ................................. 14
SHAREHOLDER PROPOSALS ..................................................... 14
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT ............ 15
OTHER MATTERS ............................................................. 15
EXPERTS ................................................................... 16
ANNUAL REPORT ............................................................. 16
PRO FORMA FINANCIAL STATEMENTS ............................................ 16
INCORPORATION OF DOCUMENTS BY REFERENCE ................................... 16
WHERE YOU CAN FIND MORE INFORMATION ....................................... 16
<PAGE>
TABLE OF CONTENTS
(continued)
ANNEX A - Asset Purchase Agreement
ANNEX B - Copy of Section 623 and 910 of the New York Business Corporation Law
regarding Appraisal Rights
ANNEX C - Pro Forma Financial Statements
ii
<PAGE>
QUESTIONS AND ANSWERS ABOUT THE SPECIAL MEETING
Q: What proposal will be voted on at the special meeting?
A: The proposal to be voted on at the special meeting is whether to approve
the sale of substantially all of our assets to Avantce RSI, LLC, a
Delaware limited liability company ("Avantce"). The assets that we propose
to sell to Avantce primarily consist of our RIMS software product, all of
our intellectual property rights, contracts, accounts receivables and
tangible personal property and certain cash, all pursuant to the terms of
the Asset Purchase Agreement attached to the accompanying proxy statement
as Annex A. The proposed sale of assets is referred to as the "asset
sale". The assets to be sold in the asset sale are substantially all of
the assets of our company.
Q: Who is the purchaser?
A: The purchaser of our assets will be Avantce RSI, LLC, a Delaware limited
liability company. Avantce is a private investment company focused on
investments in mature segments of the information technology industry. Its
principal place of business is 508 Ashley Way, Peachtree City, Georgia.
Avantce is not an affiliate of our company. For more information regarding
Avantce, you may visit Avantce's websit