BURNABY, BC, July 25, 2016 /CNW/ - Photon Control Inc. ("Photon Control" or the "Company") (TSX-V: PHO), a leading developer of optical measurement technologies, today announced that it has received full return of $4.5 million plus interest from a related third-party company. The return of the funds, with interest, was requested by Photon Control's Board of Directors on July 5, 2016 after it became aware of the unsanctioned transaction. Photon Control's Board of Directors has since implemented measures to strengthen its management team, improve internal controls and ensure good corporate governance, including the appointment of Michael Goldstein as Chairman and Acting CEO, engaging forensic accounting and intellectual property auditors and adding a new Director, Ronan McGrath.
"This unsanctioned transaction has been a catalyst for positive change and opportunity for improvement on many fronts for Photon Control," said Michael Goldstein, Chairman and Acting CEO. "While the repayment marks an important close to this unfortunate issue, we remain very committed to good corporate governance, and we will continue to take appropriate steps to review and strengthen our practices. With the recovery now behind us, our focus will centre on growing our business and capitalizing on new market opportunities for our precision measurement solutions."
In support of its growth strategy, the Company also announced that it will relocate its operations to a larger, more advanced facility that will effectively double the production capacity and enable it to deepen its R&D capabilities. Photon Control is expected to move into the new facility in 2017.
About Photon Control Inc.
Photon Control Inc. designs, manufactures and distributes a wide range of optical sensors & instruments to measure temperature, pressure, position, and flow. These products are used by original equipment manufacturers (OEM) as well as end-users in the Semiconductor, Oil and Gas, Power, Life Science, and Manufacturing industries. Photon Control's products provide high accuracy and reliability in extreme conditions and are supported by a team of experts that offer onsite installation, training, and support. Photon Control Inc. also provides engineering services for customized optical measurement systems. Headquartered in an ISO 9001:2008 manufacturing facility in Burnaby, BC, Photon Control Inc. is listed on the TSX Venture Exchange, trading under the symbol ''PHO". Additional information about the company can be found at www.photon-control.com/investorrelations.html
This News Release contains "forward looking statements" within the meaning of applicable Canadian securities legislation. Such forward looking statements concern the business and anticipated financial performance of the Company and include, without limitation, statements with respect to the Transfer to Photon Control R&D Ltd., the timing and likelihood of the return of the funds transferred, including, but not limited to, action taken by the Company to recover the funds, further investigations and conclusions of the Independent Committee; additional controls and measures to be taken by the Company, the Company's objectives, goals, liquidity, sources of capital, expectations of sales and continued development of technologies and products.
These forward looking statements are based on certain factors and assumptions, including, without limitation, the Company's ability to recover the funds transferred; the Company's ability to successfully transition management and board transitions; the Company's ability to successfully complete new purchase orders along the timelines expected; continued and future demand for the Company's products; continued sales to the Company's major customers; the continued financial health of the semiconductor industry; and the Company's ability to continue and further enhance revenue diversification and open new market opportunities.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation, the Company may never be able to recover the funds transferred, the Company may face legal action as a result of the Transfer, additional measures and controls may not be implemented as expected or along the timelines anticipated, uncertainties in the availability and cost of financing for the Company to enable the Company to achieve its goals; uncertainties relating to the market for the Company's products and maintaining a stable level of orders; fluctuations in revenue as a result of volatility in the markets and product mix; risks relating to the Company's present reliance on four major customers for the majority of its sales; risks relating to the Company's reliance on the financial health of the semiconductor industry; risks relating to the development of competing technologies and the possibility of increased competition; the effect of slow growth in the United States, the Company's principal market, as well as in Canada and other economies generally and other economic trends and conditions in the markets that the Company and its customers serve; risks associated with technical difficulties or delays in product introductions, improvements, implementation; uncertainties in product pricing or other initiatives of the Company and its competitors; uncertainties in factors that may result in a reduction in capital expenditures and/or delayed buying decisions affecting demand for the Company's products; risks relating to currency fluctuations, particularly between the Canadian and United States dollars; and risks in pursuing additional development projects to support existing customers or pursue other business opportunities.
The foregoing assumptions, risks and uncertainties are not exhaustive of the items that may affect our forward looking statements. Should underlying assumptions prove to be incorrect or one or more of these risks and uncertainties materialize, actual results may vary materially from those described in the forward looking statements. The Company's forward looking statements are based on beliefs, expectations and opinions of management on the date the statements are made. For the reasons set forth above, readers should not place undue reliance on forward looking statements. The Company undertakes no obligation to update or revise any forward looking statements included herein if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Photon Control Inc.
For further information: For Investor Relations Inquiries Please Contact: Helena Rebec, CPIR, Chief Administrative Officer / IR, Hrebec@photon-control.com, 604.422.8861 Ext 101