RICHMOND, BC, April 12 /CNW/ - CON-SPACE Communications Ltd.
(TSX-V: CCB), (http://www.con-space.com), a world leader in specialized voice
communication products, today announced that it completed the acquisition of
Search Systems, Inc. ("Search Systems") of Bakersfield, CA, a leading
manufacturer and supplier of enhanced search and inspection systems using
video, sound and vibration technology.
CON-SPACE expects the combination of the two companies to increase both
sales and earnings to the benefit of its shareholders. The combined annual
sales are expected to exceed $17M with annual earnings in excess of $2.5M.
Search Systems was acquired for a purchase price of US$9.9 million plus
certain post-closing adjustments. The acquisition included vendor take-back
financing to the former owners of US$1.5 million payable with interest at 6%
per annum over 7 years, which is secured by a charge on the assets of Search
Systems, subject to bank debt and acquisition financing debt to Turret.
Financing for the acquisition included a $6,000,000 five year loan from
Turret Oy AB ("Turret") of Finland. As part consideration for the loan, Turret
received warrants for 300,000 shares exercisable for five years at a price of
$1.00 during the first three years, $1.10 during the fourth year, and $1.22
during the fifth year. Con-Space also completed a private placement of
4,000,000 Units at $1.00 each, including 1,500,000 Units to Turret and
2,500,000 Units to Aearo Company I of Indianapolis, Indiana, for gross
proceeds of $4,000,000. Each Unit includes one share and one-quarter warrant
with each whole warrant exercisable over five years at a price of $1.00 during
the first three years, $1.10 during the fourth year, and $1.22 during the
CON-SPACE is also very pleased to announce that Mr. Rahul Kapur of
Indianapolis, Indiana has joined its Board of Directors. Mr. Kapur is the
Senior Vice-President of Aearo Company, an international designer and
manufacturer of innovative safety products and communication systems.
About SEARCH SYSTEMS
Search Systems is a world leader in the design and manufacture of
technical search, surveillance and inspection systems. Its video/audio
systems, including the Searchcam 2000, Searchcam Patrol System, Under Vehicle
Inspection System, the Searchcam EntryLink plus the DELSAR Life Detector are
used around the world by search and rescue teams, law enforcement, the
military, customs inspection tactical teams and industrial inspection
CON-SPACE is recognized worldwide as the leading designer and
manufacturer of specialized voice communication equipment used by Police,
Fire, Rescue, Government Agencies, Militaries, Municipalities and general
industry. CON-SPACE has distribution throughout North America, Great Britain,
Australia, parts of Asia, South America, and Europe. CON-SPACE also supplies
many other manufacturers with private labeled products.
This press release is available on CON-SPACE's official on-line investor
relations site for investor commentary, feedback and questions. Investors are
asked to visit http://www.agoracom.com and view the CON-SPACE Investor Contact
& Information Centre. Alternatively, investors are asked to e-mail all
questions and correspondence to CCB@Agoracom.com
"Forward-looking" statements in this release involve risks and
uncertainties associated with, among others, economic, industry conditions,
technological development, and competition and should not be relied upon as
actual results may differ materially from those projected.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: James L. Swanson, Chairman, CON-SPACE, Tel:
1-800-755-2528 or firstname.lastname@example.org; Investor Relations, AGORACOM Investor
Relations, http://www.agoracom.com or CCB@agoracom.com