TORONTO, Oct. 31 /CNW/ - Cencotech Inc. (CTZ - TSX-V) today reports that
its NamSys unit has entered into a Letter of Intent with Armor Safe
Technologies, LLC of Texas ("Armor"), which over the next three years will see
the elimination of its secured debt and the broadening of the market for the
Commercial Self Service products offered to the marketplace by NamSys Inc.
Upon completion of the transaction anticipated in the Letter of Intent,
NamSys will sell all patents and trademarks for the Commercial Self Service
products and related inventory assets to Armor 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 into the
marketplace by parties other than NamSys; license fees to be paid by Armor for
use of NamSys software employed in the Self Service products and $1.5 million
of which $600,000 is cash and the balance is payable monthly over three years
from closing. At closing, NamSys will transfer 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. The closing of the transaction is anticipated by mid
November subject to documentation satisfactory to the parties and to NamSys'
secured lender, Ashley Park Enterprises Inc.
Mr. John Siemens, the President of NamSys, stated, "The agreement with
Armor allows NamSys to clean up its balance sheet and share the risk of
developing the market while at the same time allowing NamSys to continue to
serve the clients it has developed. We look forward to broadening the
relationship we have enjoyed with Armor over the past year and the opportunity
to extend our software into new markets."
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.
