Firan Technology Group Corporation Completes U.S. Acquisition
Firan Technology Group Corporation (TSX: FTG) announced today that it has acquired from Ambitech International Inc. all of the shares of SnS Enterprises Inc. (dba Young Electronics), a U.S. printed circuit board manufacturer based in Los Angeles, California and focused primarily on the aerospace, defense and oil field industries. Young Electronics had annual revenues of approximately US$10,000,000 (unaudited) in FY04 and was profitable. FTG financed the cash purchase price of US$5,000,000 by a combination of a private placement of units of FTG consisting of common shares and warrants, and secured bank debt.
“The purchase of Young Electronics has significant strategic benefit to FTG. We are very pleased as this acquisition reinforces our market focus in aerospace and defense applications. Young’s California location places it in the center of one of the largest concentrations of aerospace and defense industries in the U.S. We look forward to continuing to build strong, positive partnerships with Young’s customers including Honeywell, Smiths Industries, Harris Corporation and Boeing. For FTG, a U.S. operation is expected to reduce some of the barriers U.S. defense firms have in contracting outside the country. It will also help us move towards more focused production facilities”, noted Mr. Brad Bourne, President and Chief Executive Officer.
“For FTG, the acquisition of Young Electronics is expected to reduce currency risks and reduce our exposure to the strengthening Canadian dollar as all of Young’s revenues and costs are denominated in a single currency”, added Mr. John Bartkiw, Chief Financial Officer.
The treasury private placement offering, which also closed earlier today, consists of 2,142,600 units for gross proceeds of approximately C$3,000,000 (C$1.40 per unit) and was co-lead by Octagon Capital Corporation and Haywood Securities Inc., as agents. Each unit is comprised of one common share in the capital of FTG and one-half common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of C$1.75 until December 10, 2006. The common shares and warrants are generally subject to a four-month hold period. The secured bank debt consists of a US$3,000,000 term facility and a US$1,000,000 revolving operating facility made available to SnS Enterprises on normal commercial terms and guaranteed by FTG.
FTG has two existing operating divisions. FTG Circuits is a leading supplier of high reliability, high technology printed circuit boards. FTG Aerospace manufactures illuminated panels and keyboards for the civil and military aviation industries. All Canadian manufacturing operations are located in Scarborough, Ontario.
The Company’s shares are traded on the Toronto Stock Exchange under the symbol FTG.
This news release contains certain forward-looking statements that reflect the current views and/or expectations of FTG with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.
For further information please contact:
Bradley C. Bourne, President and CEO Tel: (416) 299-4000 x314
Firan Technology Group Corporation firstname.lastname@example.org
John Bartkiw, CFO Tel: (416) 299-4000 x390
Firan Technology Group Corporation email@example.com