TORONTO, Dec. 15 /CNW/ - Cencotech Inc. (CTZ - TSX-V) today reports that its NamSys unit has completed the transaction anticipated in a Letter of Intent announced to the marketplace on October 31, 2006.
NamSys has sold all patents and trademarks for its Commercial Self Service products and related inventory assets to Armor Safe Technologies, LLC of Texas for consideration that includes:
- A Reseller Agreement in favour of NamSys for all of Armor's products
including the Commercial Self Service products originally developed
by NamSys;
- A royalty to NamSys on the Commercial Self Service products sold in
the marketplace by parties other than NamSys;
- License fees to be paid by Armor for use of NamSys' software employed
in the Commercial Self Service products; and
- $1.5 million of which $600,000 is cash with the balance by way of a
note payable monthly over three years.
NamSys has transferred all patents and trademarks for the Commercial Self Service products to an escrow agent which will hold them in favour of Armor until such time as all financial terms of the Agreement have been fulfilled. Immediately following closing, NamSys conveyed the Armor note and part of the cash consideration to Ashley Park Enterprises Inc. to pay down its secured operating facility.
K. Barry Sparks, President of the Company noted, "The Armor transaction allows NamSys to materially improve its balance sheet while at the same time sharing the risk of developing the market and allowing NamSys to continue to serve clients it has developed. Armor plans to invest heavily into marketing and some engineering to accelerate the market momentum NamSys has created. We believe this all augurs well for the future prospects of Cencotech."
Concurrently, the Company announced that Texas based Frost Bank has chosen to upgrade its cash vault and management system with the latest version of NamSys' CC-32 Cash Vault Management Software. Frost Bank, one of the largest banking groups in Texas, operates 93 Customer Financial Centers across the Southern US and has used NamSys' previous generation of vault management software in their cash vaults since 1998.
Cencotech Inc. was created to acquire and manage emerging high technology enterprises with sound business solutions for their customers. The Corporation's present products are designed to bring efficiency to the processing of currency and other value instruments in financial institutions, large retailers, public transportation operations and the gaming industry. Cencotech systems are "open-architectured" and have been developed to interface with client's legacy systems.
The TSX Venture Exchange has neither approved nor disapproved of the information contained in this release. This Media Release may contain forward-looking statements, which reflect the Corporation's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ from those projected herein and depend on a number of factors including the success of the Corporation's sales strategies.