TORONTO, Aug. 10 /CNW/ - Avante Security Corp. (TSXV: ASY) ("Avante" or the "Company") is pleased to announce that it has entered into an agreement (the "Agreement") with Connectrix Automated Solutions Inc. ("Connectrix"). The Agreement provides for the sale of certain assets of Connectrix and the assumption of certain liabilities by the Company in consideration for the issuance by the Company to Connectrix of 1,000,000 common shares in the capital of the Company (the "Consideration Shares"). The Consideration Shares shall be valued at $0.225, being the Discounted Market Price, as defined by the policies of the TSX Venture Exchange ("TSXV"). 400,000 of the Consideration Shares shall be issued subject to a four-month hold period prescribed by the policies of the TSXV and 600,000 of the Consideration Shares shall be issued and deposited in escrow to be released in two equal instalments on the first and second anniversaries of the closing date of the transaction.
Closing of the transaction contemplated by the Agreement is anticipated to occur on or about August 31, 2009. The Agreement and all transactions contemplated therein are subject to the approval by the Toronto Stock Exchange.
"Connectrix will expand the traditional business service line and assist in launching our ground-breaking smartboxx automation interfaces," said Emmanuel Mounouchos, President and CEO. Following the closing of the transaction, the name "Connectrix" will be changed to "Connectrixx" to be consistent with Avante's smartboxx branding.
"Our agreement with Avante Security Corp. will create a platform for growth for both Avante and Connectrix," added Adam Hepworth, President, Connectrix. "We are excited to expand Avante's traditional business line and offer our wireless iPhone programming expertise to the smartboxx engineering team."
About Connectrix Automated Solutions Inc. -----------------------------------------
Connectrix is a leading technology designer, dedicated to incorporating new technologies and products in residential and commercial properties, including structured wiring, custom lighting, multi-room audio, home theatres, CCTV/DVR systems, Audio Video Services and Phone Systems. Please visit www.connectrix.ca for additional information on Connectrix.
About Avante Security Corporation ---------------------------------
Over the past thirteen years, Avante has built its reputation as Toronto's preeminent security company by providing premium security services through the use of advanced technology and a focus on client service. Trademarked 724Smart WIP(TM), the Company's proprietary technologies provide "Anytime; Anyplace" two-way wireless communication to any electronic device. Originally developed for wireless security applications, the technology's open architecture provides a platform for expanded functionality, and the Company is now positioned to participate in the growing opportunities in energy management and metering applications, home automation and remote video monitoring among others.
Additional information relating to Avante is available on SEDAR at www.sedar.com and on the Company's website at www.avantesecurity.com.
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this release.
Forward-looking Information
Certain statements in this release may constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors, which may cause actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.
%SEDAR: 00024271E