Company: SAMSys Technologies Inc.
Stock Symbol: SMY
Listing: TSX
Outstanding Shares: 51.5 Million
Web Site: www.samsys.com
TORONTO, April 6 /CNW/ - SAMSys Technologies Inc. (SMY:TSX) ("SAMSys" or
the "Company"), an international provider of radio frequency identification
("RFID") hardware solutions, today announced that it has reached an agreement
in principle with Sirit Inc. ("Sirit") and the holder of its outstanding
secured debentures (the "Debentures") for the orderly disposition of its
assets through a court appointed receivership process. The agreement
contemplates the sale by SAMSys and its Canadian subsidiaries of all of their
assets, including the shares of the Company's U.S. subsidiaries, to Sirit in
exchange for proceeds that would satisfy the Company's obligations under the
Debentures. SAMSys does not expect to receive sufficient proceeds from the
sale to satisfy any other claims or make any distributions to its
shareholders.
The disposition of assets by the Company is subject to certain
conditions, including the appointment of a receiver by the Ontario Superior
Court of Justice and the closing of the transaction by April 13, 2006. The
Company and its subsidiaries will continue to carry on business in the
ordinary course until the sale closes.
As previously disclosed, the board of directors had determined that a
transaction involving the sale of the business was in the Company's best
interests. Prior to agreeing to the transaction with Sirit, the special
committee of the board of directors, with the assistance of the Company's
financial advisors, conducted a thorough search for potential buyers but was
unable to identify a transaction that could have been completed in a timely
manner in light of the Company's current circumstances and that would have
allowed SAMSys to continue as a going concern or provide a return to its
shareholders.
About SAMSys Technologies Inc.
SAMSys, founded in 1995, is a world-leading provider of RFID reader
solutions. SAMSys offers a family of products to simplify the installation and
ensure the ongoing performance of the overall RFID hardware infrastructure.
SAMSys is a public company whose common shares are listed for trading on the
TSX under the symbol "SMY". SAMSys has approximately 51.5 million common
shares outstanding. Visit SAMSys at: www.samsys.com and www.investorfile.com.
THIS NEWS RELEASE MAY CONTAIN FORWARD-LOOKING INFORMATION. ACTUAL FUTURE
RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED. THE RISKS,
UNCERTAINTIES AND OTHER FACTORS, BOTH KNOWN AND UNKNOWN, THAT COULD INFLUENCE
ACTUAL RESULTS MAY BE SUBSTANTIAL AND INCLUDE THOSE DESCRIBED IN DOCUMENTS
FILED WITH REGULATORY AUTHORITIES, SUCH AS THE COMPANY'S MOST RECENTLY FILED
ANNUAL REPORT AND ANNUAL INFORMATION FORM. ACCORDINGLY, NO ASSURANCES CAN BE
GIVEN THAT ANY OF THE EVENTS ANTICIPATED BY THE FORWARD LOOKING STATEMENTS
WILL TRANSPIRE OR OCCUR, OR IF ANY OF THEM DO SO, WHAT BENEFITS THE COMPANY
WILL DERIVE THEREFROM.
%SEDAR: 00001696E
