OTTAWA, Dec. 23, 2014 /CNW/ - In-Touch Survey Systems Ltd. ("In-Touch") (TSXV: INX) today announced that it is in the process of executing a definitive agreement to sell its IMS division to a new company, called IPSG Technology Inc ("IPSG") subject to certain terms and conditions including final approval by the TSX Venture Exchange. The sale is expected to close on or about January 1, 2015.
In-Touch will vend in all assets of the IMS division, which includes the transfer of certain employees and contractors related to the business and approximately $50,000 in working capital. In-Touch, for its assets and investment will retain 49% ownership in IPSG and the remaining 51% will be held through a holding company which is wholly-owned by a former employee of In-Touch.. IPSG will have a two-person Board of Directors with one of the seats held by an In-Touch designate. In-Touch believes that IPSG's business is significantly different than core In-Touch product and services. In-Touch will remain close to IPSG and will help IPSG with executive advice and guidance, as well as continuing to help IPSG leverage current In-Touch product capabilities.
"In-Touch has been on a path for the past two years to focus its energies on software applications. The divestiture of IPSG will help us focus our energies and resources along with giving IPSG the breathing room needed to grow its business", said Cameron Watt, President and CEO of In-Touch Insight Systems.
Certain statements included in this news release contain forward looking statements, which by their nature are necessarily subject to risks and uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements reflect the Company's current views with respect to future events, and are based on information currently available to the Company and on hypotheses which it considers to be reasonable; however, management warns the reader that hypotheses relative to future events which are beyond the control of management could prove to be false, given that they are subject to certain risks and uncertainties.
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: In-Touch Survey Systems Ltd.
For further information: George Pretli, [email protected], Controller, 613-270-7916