For Wireless Ronin the best way to get out of this particular hole might be to stop digging BUT here we see them entering into an agreement with NewSight (who owed them money big time) to take over the operation of the Meijer in-store network.
Earlier this month we wrote about Wireless Ronin’s Q2 2008 Results and said “…sales of USD 1.6M and a loss of USD 5.0M and you have to wonder if there isn’t a seriously broken business model somewhere here?”
Back in June in the post Why Wireless Ronin Is Taking A Beating we wrote “NewSight owed them money, and despite extended credit terms had effectively defaulted on payments again and again”
We believe that a number of people looked at ‘taking over’ the Meijer in-store network and all walked away – including, very possibly Neo Advertising. The credibility of those that walked away should tell you something.
NewSight Corporation Surrenders Collateral to Wireless Ronin Upon Maturity of its $2.4 Million Note
Wireless Ronin enters into an agreement providing for the continued operation of the Meijer in-store network
MINNEAPOLIS – August 21, 2008 -Wireless Ronin Technologies, Inc. (NASDAQ: RNIN), a Minneapolis-based digital signage provider, today announced that it has reached agreement with NewSight Corporation to terminate its digital signage agreement and to take ownership of the hardware and software constituting the in-store network at 102 Meijer stores and inventory of hardware necessary to build out approximately 40 more such stores.
“Our belief was that NewSight would have completed its financing transaction in the first half of 2008, laying the groundwork for NewSight’s future operations.” said Jeffrey C. Mack, Wireless Ronin Technologies President and CEO. “When NewSight failed to obtain such financing, we engaged in discussions resulting in Wireless Ronin taking control of the hardware and software constituting the Meijer in-store network. We are pleased to also have entered into an agreement that provides for the continued operation of the Meijer network, thereby eliminating any disruption to Meijer or its customers. We have also entered into discussions with several national network providers focused on the build-out of the remaining Meijer stores with continued management of the Meijer network by Wireless Ronin.”