Stock Symbol: SMY
Listing: TSX
Outstanding Shares: 51.5 Million
Web Site: www.samsys.com
TORONTO, March 26 /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 formed a special
committee of independent directors to review and consider strategic options
available to the Company for enhancing shareholder value including, but not
limited to, business combinations and strategic partnerships. The special
committee consists of David Newble (Chair), William McClean and Thomas Zender.
SAMSys has retained DecisionPoint International LLC in North Carolina and TD
Securities Inc. in Canada to assist the committee.
SAMSys has entered into discussions with the holder of its secured
debentures (the "Debentures") in connection with its review of strategic
alternatives. As previously disclosed, the Debentures contain a covenant which
requires that the Company maintain a minimum cash balance of $2,000,000 while
any obligations under the Debentures remain outstanding. If SAMSys is unable
to conclude a transaction or reach an agreement with the holder of the
Debentures with respect to that covenant, management currently expects that
the Company's cash balance will be reduced to that covenant amount in early
May 2006. There is no guarantee that the Company will complete a transaction
or reach an agreement with the holder of the Debentures before such time.
The Company also announced that Mr. Dziersk has resigned from the board
of directors effective today and advised the Company that he will not stand
for election as a director at the Company's annual general meeting to be held
on Monday, March 27, 2006. Mr. Dziersk continues to serve as Chief Executive
Officer and President of the Company.
The Company also announced two other changes to the slate of nominees for
election to the board of directors that was set out in the Company's
management information circular. Mr. Jeff Berkow has resigned from the board
of directors effective today and Ms. Christine Soden has advised the Company
that she will not stand for election. Management of the Company will not put
forward alternative nominees for election at the meeting. Instead, the board
of directors has resolved to fix the size of the board at five members.
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
