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.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE Mitec Technologies Inc.