Contract covers the manufacture of a sensor for building automation
QUEBEC CITY, March 22 /PRNewswire/ - Lyrtech Inc. (Lyrtech or the Company) (TSXV: LTK), a worldwide leader in digital signal processing technologies, has concluded a manufacturing agreement with an undisclosed multinational for the production of a sensor intended for building automation designed by Lyrtech.
This contract, valued at $342,000, follows the development of the product for the client by Lyrtech's engineering team over a 12-month period. This will also open the door to other such manufacturing contracts for products under development at Lyrtech that would be sold under the customer's brand, taking advantage of Lyrtech's original design manufacturer (ODM) business model, currently under aggressive development.
As energy use and energy efficiency are growing concerns everywhere, the solution in this agreement is anticipated to find great success in building automation applications, especially smart buildings, where it will allow central controllers to automatically adjust heat, airflow and light use. Other promising technologies developed at Lyrtech are also under evaluation for applications in smart buildings and building automation.
"We are delighted by this contract, as it strengthens an already successful relationship," said Louis Bélanger, president and CEO of Lyrtech. "This latest deal is in perfect sync with the ODM business model we've been developing. It brings us high, profitable volume of business and it's an essential part of our overall strategy of building value for our shareholders."
Lyrtech and this client expect to extend the current contract terms over three years for a total value of $1.2 million. Another solution in the same field of applications will also likely be added in the near future for an added value of $5.5 million over three years, which would bring the total value of the contract to approximately $6.7 million. The next solution will, in all likelihood, be launched in 2011.
Increase in the number of available options
Lyrtech also announces it increased by 1,170,000 the number of common shares reserved for issuance pursuant to its stock option plan. The number of common shares reserved for issuance under the stock option plan is now set at 3,670,000.
Grant of options
Further, Lyrtech announces that, concurrently to the modification of its stock option plan, it has granted a total 250,000 options to Vincent Bélanger, its recently appointed CFO, as well as a total of 600,000 options to four consultants involved with its investor relations activities. All these options are granted in accordance with the terms and conditions of Lyrtech's stock option plan and confer to their holders the right to acquire Lyrtech common shares at a price of $0.15 per share over a period of two and a half years and carry an expiry date of March 22, 2021.
Lyrtech, a proud member of the Texas Instruments Design House Network, develops and manufactures advanced digital signal processing solutions for companies worldwide, a vital technology to network and wireless communications, audio and video processing, as well as electronic systems in all fields of technology. Lyrtech offers a full range of DSP-FPGA development platforms, as well as design, prototyping, and manufacturing of electronic products. Lyrtech works in partnership with industry leaders such as Texas Instruments, The MathWorks, and Xilinx. Lyrtech's customers include many prestigious names of the consumer electronics, telecommunications, aerospace, and defence fields.
This press release contains forward-looking statements which reflect the Company's current expectations regarding future events. These forward-looking statements involve risks and uncertainties, many of which are beyond the Company's control. Actual events could differ materially from those projected herein and depend on a number of risks and uncertainties. Investors are cautioned not to place undue reliance on these forward-looking statements. For additional disclosure regarding these and other risks faced by Lyrtech Inc., see the disclosure contained in its public filings in Canada with the Canadian Securities Administrators (CSA), available on the Investor Relations section of the Company's Web site at www.lyrtech.com and on the CSA's Web site at www.sedar.com.
The TSX Venture Exchange, Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.
SOURCE LYRTECH INC.