TSX Venture Exchange symbol: FOX
TORONTO, Aug. 13 /CNW/ - Fiber Optic Systems Technology, Inc. ("FOX- TEK"), (TSX-V: FOX), a developer and manufacturer of patented non-intrusive sensing systems, today announced that it has been granted conditional approval by the TSX Venture Exchange for FOX-TEK's proposed reverse takeover by Marcon International Inc. ("Marcon"). In consideration for acquiring all the shares of Marcon, FOX-TEK will issue 91,814,668 common shares to Knoxbridge Corp., a corporation owned and controlled by Allen Lone. The shares are subject to the Tier 2 value security escrow conditions of TSX-V policies entailing the release of the shares from escrow over 36 months. Final acceptance by the TSX-V of the transaction is subject to a number of conditions including shareholder approval and written confirmation that the proposed private placement has been completed for gross proceeds of at least $1,250,000. Shareholder consent will initially be sought by consent letters from major shareholders who collectively hold more than 50% of all outstanding shares. A Filing Statement describing the transaction is in the later stages of TSX-V approval and will be posted on SEDAR once finalized.
Completion of the acquisition is subject to a number of conditions, including but not limited to, TSX-V final acceptance. The acquisition cannot close until the required shareholder approval is obtained and the minimum financing of $1,250,000 is completed. There can be no assurance that the acquisition will be completed as proposed or at all. The TSX Venture Exchange has in no way passed on the merits of the proposed acquisition and has neither approved nor disapproved the contents of this press release.
Fiber Optic Systems Technology, Inc. "FOX-TEK" develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling, and process pressure and temperature. FOX-TEK's FT fiber optic sensor and PinPoint systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks.
FOX-TEK has offices in Toronto, ON and Alberta; FOX-TEK is traded on the TSX Venture Exchange under the symbol "FOX". For more information, visit www.fox-tek.com.
This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in FOX-TEK's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. FOX-TEK has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Completion of the transaction is subject to a number of conditions, including Exchange acceptance and Shareholder approval. The transaction cannot close until the required Shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the Filing Statement to be prepared in connection with the transaction, any information released or received with respect to the RTO may not be accurate or complete and should not be relied upon. Trading in the securities of FOX-TEK should be considered highly speculative.
SOURCE FIBER OPTIC SYSTEMS TECHNOLOGY, INC. (FOX-TEK)
For further information: For further information: Sean Carr, President & CFO, Fiber Optic Systems Technology, Inc., Tel: (416) 665-2288, email: email@example.com