AVINFO in China now under Cantronic Systems Inc.
Cantronic Systems Inc. (”Cantronic” or the “Company”) (TSX VENTURE:CTS) announced today that pursuant to the news release issued by the Company on March 9, 2009, it has completed the acquisition of a 58.6 percent interest in Beijing Advanced VideoInfo Technology Co., Ltd. (”AVINFO”) in Beijing, China. As previously disclosed, Cantronic will pay a total of RMB 9.2 million (approximately CDN$1.7 million) in cash in two phases for the acquisition of its 58.6 percent interest in AVINFO. Cantronic has sufficient cash and cash equivalents to support the capital requirements for both phases.
All of AVINFO management will remain working for either AVINFO or Cantronic China to ensure the smooth and successful integration of AVINFO. Cantronic also agreed to issue up to RMB 8.4 million (approximately CDN$1.2 million) worth of Cantronic common shares to AVINFO management and management consultants under an earn-out performance-based arrangement. All Cantronic common shares issued under such arrangement will be issued one year after the close of the acquisition, at the price to be calculated based on market price at the time of issuance and will have a two-year lock-up period after issuance.
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