TSX Venture Exchange Symbol: SNV
VANCOUVER, Oct. 30 /CNW/ - SONIC Technology Solutions Inc. ("SONIC" or "the Company") today announced under the terms of SONIC's purchase agreement with Northern Oil Research Technologies Inc. ("NOR") the second performance milestone has been met. This milestone involved performance evaluation to meet medium sour oil grades using heavy oils to achieve a minimum of 25 API with the upgraded oil quality acceptable to PetroSonic's potential clients.
Accordingly, the former shareholders of NOR were entitled to be issued shares in the Company valued at five hundred thousand dollars and issued on a formula based on current market prices.
However, management's belief that the current market turmoil has forced its share price to trade well below expectations of when the NOR purchase agreement was completed and the current share price is not reflective of the true value of recent developments. Therefore, management has successfully negotiated with the former shareholders of NOR to issue the shares above market at 0.20 cents per share equating to 2.5 million common shares of Sonic.
Management would like to thank the former shareholders of NOR for their commitment to the overall success of Sonic. The issued shares will be subject to a four month hold period as well as restrictions on transfer contained in the original purchase agreement.
About SONIC and PetroSonic
PetroSonic is a wholly owned subsidiary of SONIC and the exclusive licensee of a heavy oil upgrading process utilizing proprietary processes and sonic reactor technology developed and owned by SONIC. The PetroSonic upgrading process incorporates de-asphalting and oxidation stages in a low temperature and pressure process.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.