BURLINGTON, ON, April 20 /CNW/ - IPICO Inc. (TSX-V: RFD) confirmed today that its agreement with CATS LUHAI (Beijing) Investment Co., Ltd. (see press release dated August 25, 2009) respecting a potential private placement by CATS LUHAI in IPICO will not be extended by IPICO and has been allowed to lapse.
Gordon Westwater, President and CEO of IPICO, noted "This is a particularly frustrating result to have to come to, because both parties had such high expectations for this international investment. But given the considerable difficulties experienced to date in obtaining the necessary approvals and satisfying other pre-conditions in China, and the opaqueness of that investment process looking forward, our board reluctantly determined that it was in the company's best interest to move on."
IPICO confirmed that it has opened discussions with a number of other parties in China interested in exploring strategic options and alternative sources of capital within China.
IPICO further confirmed that even though the subscription agreement has expired both IPICO and CATS have expressed their desire and intention to continue with the commercial implementation of the EVI joint venture in China between IPICO and CATS (see press release dated April 29, 2009) CATS is a subsidiary of the CHINA ACADEMY OF TRANSPORTATION SCIENCES, which is the Chinese national government department with general responsibility for all national and local motor vehicle, highway and road systems within China. The implementation of IPICO's automated RFID tolling solution over the vast numbers of motor vehicles and networks of roadways in China is not only expected to achieve very significant cost and revenue efficiencies, it is hoped that the implementation of advanced vehicle identification and routing solutions will significantly reduce the extremely high levels of traffic congestion and resulting pollution experienced in many densely populated areas of the country.
ABOUT IPICO Inc.: IPICO Inc. is an RFID solution supplier with operations in Canada, USA, South Africa, Europe and Asia. IPICO produces smart labels and tags based on the IP-X communication protocol. IPICO's low interference readers are designed to meet regulatory requirements in many major markets, and allow for multi-reader rollout in close proximity. IPICO's low cost RFID products excel at long read range, fast multi-read anti-collision and high thru-beam read-speeds of dynamic tag populations. These products are used to optimize the management of items, people, animals and processes within the logistic supply chain and other value chains. For further information, go to www.IPICO.com
This news release contains certain forward-looking statements pertaining to future anticipated projected plans, performance and developments, as well as other statements relating to future operations and results, including, without limitation, statements as to sales forecasts and required minimum future revenues. Any statements in this news release that are not statements of historical fact may be considered to be forward-looking statements. Written words such as "may", "will", "expect", "believe", "anticipate", "estimate", "intends", "goal", "objective", "seek", "attempt", "suggest" or variations of these or similar words, identify forward-looking statements. These statements by their nature are estimates of future results only. Actual results could differ materially from those contained in the forward-looking statements and are based on current expectations that involve substantial risks and uncertainties, including but not limited to the failure to meet market growth, order volume, delivery commitment or minimum revenue expectations, political intervention, and those other risks and uncertainties detailed from time to time in IPICO's periodic reports filed on SEDAR (www.sedar.com)
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR THE ACCURACY OF THIS RELEASE.
SOURCE IPICO INC.
For further information: For further information: Gordon Westwater, President & CEO, IPICO Inc., Tel: (905) 631-6310, Email: email@example.com