TORONTO, Oct. 7, 2013 /CNW Telbec/ - Mitec Technologies Inc.
("Mitec") announced today that it has acquired intellectual property
("IP") that has the potential to significantly address security and
privacy risks associated with the use of payment cards.
The IP was acquired by Mitec from Abe Schwartz, who has agreed to join
Mitec's Board of Directors and be involved with commercialization
efforts. Mr. Schwartz has held executive positions in various public
and private companies and has an established track record of
commercializing information technologies. Subject to regulatory
approval, Mr. Schwartz will replace Edward Leavens on Mitec's Board of
Jeffrey Mandel, Mitec's CEO stated, "Mitec's current strategy has been
to attempt to identify opportunities which could provide it with
compelling IP in growth markets. Unfortunately, Mitec does not
currently have a balance sheet that allows it to acquire such
significant IP without either completely diluting shareholders or
having to raise substantial capital. Furthermore, as we explored
numerous opportunities, we had to face the reality that Mitec has
contingent liabilities that does not make it an attractive vehicle to
partner with. The IP we are acquiring in this transaction has
tremendous potential to positively impact the way companies manage
sensitive payment card data. The added advantage to this transaction is
that Abe is familiar with Mitec's past business and is comfortable in
helping to restart Mitec."
Mitec acquired the IP from Mr. Schwartz by way of a Purchase Agreement
that was executed today in exchange for a combination of 5 million
Mitec common shares and a secured Promissory Note for $1 million. Mr.
Schwartz will become the largest shareholder of Mitec, with aggregate
holdings of approximately 43% of Mitec's common shares.
This news release contains forward-looking statements which reflect
Mitec's current expectations regarding future events. The
forward-looking statements are often, but not always, identified by the
use of words such as "seek", "anticipate", "plan, "estimate", "expect",
"intend" and statements that an event or result "may", "will",
"should", "could" or "might" occur or be achieved and other similar
expressions. These forward-looking statements involve risk and
uncertainties, including the difficulty in predicting product
approvals, acceptance of and demands for new products, the impact of
the products and pricing strategies of competitors, delays in
developing and launching new products, the regulatory environment,
fluctuations in operating results and other risks, any of which could
cause results, performance, or achievements to differ materially from
the results discussed or implied in the forward-looking statements.
Many risks are inherent in the industry; others are more specific to
Mitec. Investors should consult Mitec's ongoing quarterly filings for
additional information on risks and uncertainties relating to these
forward-looking statements. Investors should not place undue reliance
on any forward-looking statements. The Mitec assumes no obligation to
update or alter any forward-looking statements whether as a result of
new information, further events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE: Mitec Technologies Inc.
For further information:
Mr. Jeffrey Mandel
President, CEO & Chairman
Tel.: (416) 972-5066