CALGARY, Sept. 27 /CNW/ - Pure Technologies Ltd., TSX-V: PUR, ("Pure")
announced today that it has entered into a binding agreement to sell its video
surveillance subsidiary, PureTech Systems Inc. ( PureTech ) to a U.S. company
("the Purchaser"). Under the terms of the agreement, the Purchaser has agreed
to purchase 100% of the stock of PureTech for cash consideration of
US$3.25 million. The purchase is subject to customary closing conditions and
is expected to close on October 1st, 2007.
Pure is expected to realize a gain on the sale in excess for US$1 million
in its Q4 results. Subsequent to the sale, annualized marketing, research and
development, general and administrative expenses are expected to decrease by
more than $2 million for the consolidated entity.
Commenting on the sale, Jamie Paulson, Chairman of Pure Technologies
Ltd., said: "We are pleased to announce the sale of PureTech Systems Inc. The
Purchaser is a leading developer, manufacturer, marketer and integrator of
advanced sensing technologies, products and solutions whose principal market
is Homeland Security. This transaction will provide PureTech with the
financial, management and marketing support to allow it to achieve its goal of
becoming a major player in the emerging field of video analytics, while
allowing Pure Technologies to focus on its core business of developing and
selling environmental technologies and solutions for infrastructure
ABOUT PURETECH SYSTEMS INC.
PureTech was formed in February 2005 to capitalize on organic research
within Pure in the area of monitoring and surveillance. Since its inception,
PureTech has established itself as a technology and service leader in the
field of remote site surveillance, resulting in contracts for such
high-profile facilities as the Port of Seattle, Minneapolis-St. Paul Airport
and the Port of Halifax.
ABOUT PURE TECHNOLOGIES LTD.
Pure Technologies is an international technology company which has
developed patented technologies for inspection, monitoring and management of
critical infrastructure around the world. Pure operates from its headquarters
in Calgary, Canada and through subsidiaries in Maryland and New Jersey.
Pure's proprietary product portfolio includes SoundPrint(R), a continuous
acoustic structural monitoring system for buildings, bridges and structures;
SoundPrint(R) AFO, a fiber-optic distributed acoustic sensing system for
monitoring and surveillance of pipelines; and SmartBall(R), a revolutionary
new leak detection technology for water, wastewater and hydrocarbon pipelines.
This release contains forward-looking statements. Forward-looking
statements, without limitation, may contain the words "believes", "expects",
"anticipates", "estimates", "intends", "plans", or similar expressions.
Forward-looking statements are not guarantees of future performance. They
involve risks, uncertainties and assumptions and the Company's actual results
could differ materially from those anticipated. Forward-looking statements are
based on the opinions and estimates of Management at the date the statements
are made, and are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ materially from
those projected in the forward-looking statements. In the context of any
forward-looking information please refer to risk factors detailed in, as well
as other information contained in, the Company's filings with Securities
(R) Registered Trademarks, property of Pure Technologies Ltd.
(TM)Trademark, property of Pure Technologies Ltd.
"The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release"
For further information:
For further information: about Pure Technologies Ltd. (TSX-V: PUR),
visit our website at www.puretechnologiesltd.com. Or contact James E. Paulson,
Chairman or Karen Keebler, Chief Financial Officer at (403) 266-6794 or e-mail