TORONTO, Dec. 13, 2016 /CNW/ - Baylin Technologies Inc. (TSX: BYL) (the "Company" or "Baylin"), announces that, in May 2014, Jiangsu Ruilai Law Firm (the "Custodian") was appointed as custodian of the Legal Representative, Company, Finance and Contract chops (the "Chops") of Galtronics Electronics (Wuxi) Co., Ltd. ("Galtronics China"), the Company's subsidiary located in Wuxi, China. Prior to such appointment, the previous custodian, which was located in Shanghai, had engaged the Custodian to act as local agent to maintain the Chops in Wuxi. Since Galtronics China required access to the Legal Representative and Company Chops on a daily basis, as the custody process was implemented following the Company's initial public offering in November 2013 (the "IPO"), it became impractical for the previous custodian to fulfill its mandate.
In connection with the IPO, the Company's prospectus dated November 19, 2013 contained the following statement with respect to the custodian agreement (the "Previous Custodian Agreement") among the Company, Galtronics China and the Company's previous custodian dated November 19, 2013: "In the event the custodian agreement is terminated or in the event that the Company appoints a new custodian, the Company will issue a press release forthwith and file a material change report in accordance with applicable securities laws". Similarly, the Company gave an undertaking to the Ontario Securities Commission (the "OSC") which contained the following statement: "Upon termination of any custodian arrangement or removal or replacement of the custodian, the undersigned further undertakes and agrees to forthwith issue a press release and file a material change report in accordance with applicable securities laws". The Company should have issued this press release forthwith upon the appointment of the Custodian in May 2014 pursuant to the undertaking to the OSC. This press release is being issued in connection with a review of the Company by the OSC in connection with a failure by the Company to issue a press release and file a material change report upon appointment of the Custodian.
Baylin is a leading global wireless technology management company. Baylin focuses on design, development, manufacturing and delivery of leading wireless products and services. We aspire to meet our customers' needs and anticipate the direction of the market.
SOURCE Baylin Technologies Inc.
For further information: Investor Relations: Kelly Myles, Marketing and Communications Manager, Baylin Technologies Inc., email@example.com