December 13 1999
Icron Systems Inc.
Icron Systems Inc. announced today that it has agreed to sell its electronics manufacturing services subsidiary, Icron Manufacturing Inc., for $1.68 million to a group of investors led by Doug Kind, the Company’s founder and former President and CEO. In exchange for the shares of Icron Manufacturing, Icron Systems will receive $320,742 in cash, $1,113,811 by assumption of debt and liabilities and the balance by the surrender of 1,326,126 escrow shares of Icron Systems Inc. Doug Kind has further agreed to transfer 600,000 shares of Icron Systems Inc. to representatives of the Board of Directors for allocation to existing and future Directors, employees and consultants. This transaction is subject to independent professional valuation, as well as shareholder and Canadian Venture Exchange approvals. Interface International (www.interfaceweb.com) will, subject to regulatory approval, receive a success fee for the completion of this transaction.
Mr. Kelly Edmison, Icron’s Chairman of the Board, said, “Icron Systems Inc. will now focus exclusively on its Universal Serial Bus (USB) business opportunities arising from its proprietary USB range extension products and technologies. This is an excellent arrangement for both companies. Many companies struggle to develop one business. We have succeeded in launching two very promising businesses. While our initial strategy was to take advantage of the synergy between the businesses, it has become clear that for each to fulfill its potential the two companies would be better off as separate entities. Both companies can now pursue their respective business opportunities without compromise on overall direction. We are proud of the success of Icron Manufacturing, and wish them every success. We are very excited about the acceptance of our ExtremeUSB™ technology as demonstrated by our Comdex debut last month and are confident that this will provide tremendous value to our shareholders as we move forward.”
The Company intends to complete a private placement of up to 1,250,000 units comprised of one common share and one common share purchase warrant at a price of $0.40 per unit. The common share warrant will entitle the holder to purchase an additional common share at a price of $0.60 per share until two years from closing. Interface International will, subject to regulatory approval, receive a commission for the completion of this private placement. This private placement is subject to the approval of the Canadian Venture Exchange.
Icron Systems Inc. of Vancouver, BC has invented ExtremeUSBTM technology, a practical means of extending the range of USB connections from 15 feet (5 meters) to over 300 feet (100 meters). Icron has applied for patents covering its inventions and is integrating this technology into a series of products for PC users. Icron has established the ExtremeUSB™ Team of companies to increase the total market for USB products by enabling a broad set of new applications based on ExtremeUSB™. Icron is a publicly traded company and trades under the symbol ICM on the Canadian Venture Exchange.
Note: The company relies on litigation protection for “forward-looking” statements. The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
FORWARD-LOOKING STATEMENTS: Except for statements of historical fact, all statements in this news release – including, without limitation, statements regarding production estimates and future plans and objectives of Icron – are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.