Eurocontrol Technics Inc. (TSX Venture: EUO) ("Eurocontol" or the "Company"), a Canadian public company specializing in the acquisition, development and commercialization of innovative energy security, authentication and verification technologies, is pleased to announce that it has entered into a definitive agreement to acquire all of the issued and outstanding common shares of Xenemetrix LTD., a private company based in Israel (the “Acquisition”) with offices inRound Rock , Texas. Xenemetrix develops, manufactures and sells x-ray fluorescent (XRF) systems for material analysis in a wide range of global markets, primarily used in homeland security, forensics, minerals and mining, in-situ fraud prevention and petrochemicals. Xenemetrix is the supplier of the XRF systems that make up the monitoring component of Eurocontrol’s ISO 17025 accredited Petromark™ technology. Xenemetrix and Eurocontrol have recently finished development of Eurocontrol’s 2nd generation XRF monitoring system.
“Eurocontrol is pleased to be acquiring Xenemetrix and their global install base of approximately 800 XRF systems.” commented Bruce Rowlands, CEO, Eurocontrol Technics. “The vertical integration of our detector manufacturer will benefit our core hydrocarbon marking business and provide Eurocontrol opportunities for expansion into the existing markets that Xenemetrix services currently, as well as entry into new and emerging markets through the additional technologies that are under development at Xenemetrix today.” added Mr. Rowlands.
Doron Reinis, CEO of Xenemtrix, believes the acquisition “will further accelerate Xenemetrix’s rate of expansion by enabling a quicker time-to-market for its pipeline products as a result of an expanding technology portfolio. In addition, it will provide Eurocontrol with additional resources to obtain their ongoing strategic objectives in the authentication and verification markets”.
In connection with the Acquisition, it is Eurocontrol shall: (i) issue an aggregate of 4,133,334 common shares of the Company (the “Common Shares”); (ii) issue 1,533,333 common share purchase warrants (the “Warrants”) entitling the holder thereof to acquire one Common Share at an exercise price of $0.50 for period of 24 months from the date of closing; and (iii) deliver a cash payment in the amount of USD$180,000.
The Acquisition remains subject to standard closing conditions, including but not limited to, receipt of all necessary approvals, including the approval of the TSX Venture Exchange.