MONTREAL, April 19, 2012 /CNW Telbec/ - Mitec Telecom Inc. ("Mitec") (TSX: MTM), today announced that it is currently in the process of making an application to voluntarily delist its common shares for trading on the Toronto Stock Exchange and pursue a listing on an alternative exchange. Mitec also announced that it will not be proceeding with its previously reported letter of intent to combine with Optiway Inc.
Mitec had previously announced that it had intended to combine with Optiway Inc., subject to the successful execution of a definitive agreement as well as shareholder and regulatory approvals. However, the success of the proposed Optiway - Mitec combination was predicated on Mitec continuing to be listed on the Toronto Stock Exchange. As part of its listing review, the Toronto Stock Exchange has requested Mitec to provide certain detailed information relating to the proposed Optiway - Mitec combination which Mitec has determined, mainly from timing and resource perspectives, is not likely to be concluded in time to prevent Mitec's listing on the Toronto Stock Exchange from lapsing based on its current status and operations.
Therefore, Mitec has determined that the best course of action is to apply to be listed on an alternative exchange to the Toronto Stock Exchange and to continue to explore ways to achieve its objective of pursuing sustainable and long-term opportunity for shareholders. Mitec is currently in discussion with various regulatory authorities to determine the most effective way to continue its listing and will update shareholders as soon as it is able.
"We are disappointed that circumstances have resulted in the termination of the Mitec - Optiway opportunity, especially as we are having success repositioning Mitec financially and streamlining the corporation to facilitate new opportunities", commented Jeffrey Mandel, Mitec's President and CEO.
About Mitec Telecom Inc.
Mitec is a leading designer and provider of radio frequency (RF) products for the telecommunications industry. Mitec sells its products worldwide to network providers for incorporation into high-performing wireless networks used in voice and data/internet communications. Mitec is located in Montreal, Canada. Mitec is listed on the Toronto Stock Exchange under the symbol MTM. On-line information about Mitec is available at www.mitectelecom.com.
Certain statements in this release, including statements regarding future results and performance, are forward-looking statements based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decreases in demand for Mitec's products, fluctuations in selling prices and adverse changes in general market and industry conditions and other factors listed in Mitec's public filings with the appropriate securities regulatory authorities.
For further information:
Source: Mitec Telecom Inc.
Mr. Jeffrey Mandel
President, CEO and Chairman, Mitec Telecom Inc.
Tel.: (514) 694-9000