Business
CON-SPACE Completes Acquisition of Search Systems, Inc
CON-SPACE Completes Acquisition of Search Systems, Inc.
About this update from Canada Carbon, Inc.
[{"type":"text","content":"\n\n\n\nRICHMOND, BC, April 12 /CNW/ - CON-SPACE Communications Ltd.\n(TSX-V: CCB), (http://www.con-space.com), a world leader in specialized voice\ncommunication products, today announced that it completed the acquisition of\nSearch Systems, Inc. ("Search Systems") of Bakersfield, CA, a leading\nmanufacturer and supplier of enhanced search and inspection systems using\nvideo, sound and vibration technology.\n\n\nCON-SPACE expects the combination of the two companies to increase both\nsales and earnings to the benefit of its shareholders. The combined annual\nsales are expected to exceed $17M with annual earnings in excess of $2.5M.\n\n\nSearch Systems was acquired for a purchase price of US$9.9 million plus\ncertain post-closing adjustments. The acquisition included vendor take-back\nfinancing to the former owners of US$1.5 million payable with interest at 6%\nper annum over 7 years, which is secured by a charge on the assets of Search\nSystems, subject to bank debt and acquisition financing debt to Turret.\n\n\nFinancing for the acquisition included a $6,000,000 five year loan from\nTurret Oy AB ("Turret") of Finland. As part consideration for the loan, Turret\nreceived warrants for 300,000 shares exercisable for five years at a price of\n$1.00 during the first three years, $1.10 during the fourth year, and $1.22\nduring the fifth year. Con-Space also completed a private placement of\n4,000,000 Units at $1.00 each, including 1,500,000 Units to Turret and\n2,500,000 Units to Aearo Company I of Indianapolis, Indiana, for gross\nproceeds of $4,000,000. Each Unit includes one share and one-quarter warrant\nwith each whole warrant exercisable over five years at a price of $1.00 during\nthe first three years, $1.10 during the fourth year, and $1.22 during the\nfifth year.\n\n\nCON-SPACE is also very pleased to announce that Mr. Rahul Kapur of\nIndianapolis, Indiana has joined its Board of Directors. Mr. Kapur is the\nSenior Vice-President of Aearo Company, an international designer and\nmanufacturer of innovative safety products and communication systems.\n\n\nAbout SEARCH SYSTEMS\n\n\nSearch Systems is a world leader in the design and manufacture of\ntechnical search, surveillance and inspection systems. Its video/audio\nsystems, including the Searchcam 2000, Searchcam Patrol System, Under Vehicle\nInspection Sy...