WATERLOO, ON, July 23 /CNW/ - Virtek Vision International Inc. (TSX:VRK)
("Virtek" or the "Company"), a leading provider of high value industrial laser
solutions, today announced that its Board of Directors is considering a number
of alternatives aimed at maximizing shareholder value.
One of the initiatives under serious discussion with an arms length third
party involves the possible sale of certain assets of Virtek's business, with
shareholders receiving a portion of the proceeds. The Board expects that if
these discussions conclude successfully, shareholders will receive a proposal
for some of Virtek's assets that is superior to StockerYale's offer of $0.65
per share for the entire Company.
Completion of the contemplated alternative superior transaction would be
subject to a number of conditions, such as satisfactory completion of due
diligence by the proposed purchaser, the negotiation and execution of a
definitive agreement, and approvals by Virtek's shareholders and regulators.
Further details will be provided in the event that a definitive agreement is
reached. At this stage, no assurances can be made that this will occur prior
to the expiry of the StockerYale offer on August 1, 2008, or that the
contemplated alternative proposal will be consummated.
"The Board believes the present StockerYale offer materially undervalues
the Company and has spoken to many shareholders who do not intend to tender to
the offer. We are focusing on providing shareholders with a value enhancing
alternative to the current proposal and we have made significant progress in
this regard. The alternative superior transaction under discussion is an
example of the potential value of the business and our commitment to
maximizing shareholder value," said D. Brian Harrison, Chairman of the Board
As set out in detail in Virtek's Directors' Circular dated July 11, 2008,
the Board of Directors of Virtek unanimously recommends that shareholders
reject the StockerYale offer and not tender their shares to the offer.
Shareholders are urged to read the Directors' Circular in its entirety. The
Directors' Circular has been mailed to shareholders and is available free of
charge on SEDAR at www.sedar.com. Shareholders wishing to withdraw their
shares from the StockerYale offer are encouraged to contact Kingsdale
Shareholder Services Inc., toll free at 1-866-581-1571.
About Virtek Vision International Inc.
Virtek Vision International Inc. is a leading provider of high value
industrial laser solutions focused on the needs of the global manufacturing
sector, providing templating, inspection, marking and engraving products.
Virtek serves customers in the prefabricated construction, transportation,
metalworking, tool and die and mold making industries worldwide. Virtek is a
full service provider, with services including manufacturing, development,
integration, training, after sales support and installation. The Company
delivers high value to its customers, including feature-rich systems with a
quick payback, productivity enhancements and total turnkey solutions. The
majority of Virtek's sales are in the United States and Europe. Virtek
maintains offices in Waterloo, Ontario, Canada; Boston, Massachusetts, United
States; Ludenscheid and Nurnberg, Germany; and Busto Arsizio, Italy. Please
visit www.virtek.ca for more information.
Except for historical information provided herein, this press release may
contain information and statements of a forward-looking nature concerning the
future performance of the Company. These statements are based on suppositions
and uncertainties as well as on management's best possible evaluation of
future events. Such factors may include, without excluding other
considerations, fluctuations in quarterly results, evolution in customer
demand for the Company's products and services, the impact of price pressures
exerted by competitors, and general market trends or economic changes. As a
result, readers are advised that actual results may differ from expected
For further information:
For further information: about Virtek Vision International Inc. please
visit www.virtek.ca or contact: Peter Monsberger, VP Finance and CFO, Tel:
(519) 746-7190, Fax: (519) 746-3383, e-mail: firstname.lastname@example.org;
Stephen Sorocky, President and CEO, Tel. (519) 746-7190, Fax. (519) 746-3383,
e-mail: email@example.com; Investor Relations Contact: Jo Mira
Clodman, Clodman Hecht Communications Inc., (416) 787-3773, e-mail:
firstname.lastname@example.org; Kingsdale Shareholder Services Inc., 1-866-581-1571,