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 Directors.
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.
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SOURCE Mitec Technologies Inc.