TSX venture Exchange Trading Symbol - TPI
48,820,704 shares outstanding
TORONTO, May 8 /CNW/ - Tenth Power Technologies Corp. (TSX-V:TPI) (the
"Company" or "Tenth Power") announced that it has entered into an agreement to
divest its interest in Admiral Secure Products, Ltd. ("Admiral").
Tenth Power holds, indirectly through its wholly-owned subsidiary,
2126166 Ontario Inc., a 75% equity interest in Admiral. Tenth Power acquired
its interest in Admiral in February, 2007, but now plans to divest it as a
result of a change in strategic business direction. When initially purchased,
Tenth Power paid $2,000,000, satisfied as to $200,000 by the issuance of
1,428,000 common shares of the Company (the "Consideration Shares") and, as to
the balance of the purchase price, by the assumption of indebtedness in the
principal amount of $1,800,000 pursuant to three promissory notes held by the
three business principals of Admiral (the "Notes").
Subject to the approval of the TSX Venture Exchange ("Exchange"), the
Company plans to divest its interest in Admiral for a sale price of $66,410
and, at the same time, the three business principals of Admiral will transfer
1,328,000 of the Consideration Shares (at $0.05 per share) originally issued
to such principals in 2007, to a company in which a director of Tenth Power
has a minority interest. On closing, the parties have agreed that the Notes
will be cancelled without any further payment thereon.
It's the intention of the parties to close this transaction, subject to
receipt of Exchange approval, on or before May 31, 2009.
The Company's decision to divest of Admiral is the result of a strategic
decision to provide more focus on its core businesses of secure communication
and certainty of identity.
ABOUT TENTH POWER TECHNOLOGIES CORP.
Tenth Power is a Canadian based technology and solutions company. The
Company provides bio identity technology, work flow and resource management
platforms, secure information transfer technology and innovative product
development in integration services. The Company's products and services are
currently being delivered in the Government and manufacturing sectors and are
being prepared for the financial services and health care markets.
For further information:
For further information: Maureen Espin, Tenth Power Technologies Corp.,
Tel: (905) 948-9229 ext: 177