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VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 02/24/17 -- Quadron Capital Corp. (the "Company" or "Quadron") - (CSE: QCC) - is pleased to announce that it has entered into a letter of intent (the "LOI") to acquire all of the issued and outstanding securities of Cybernetics Control Systems Inc. ("Cybernetics"), an arm's length party, (the "Acquisition").
Specific to the cannabis industry, Cybernetics has developed electronic/automated products and systems relating to LED lighting systems and nutrient mixing/sensing systems which are designed to increase efficiencies and reduce costs associated with these two main components of the cannabis growing lifecycle.
Cybernetics designs, manufactures and supplies custom and standard machines and automated control packages to the process manufacturing and industrial sectors, with a focus on cannabis, oils, hydroponics, automated growing and bioenergy. Cybernetics works closely with customers' machinery and factory process concerns and develops solutions to automate them.
After the design phase, Cybernetics provides custom control (electrical, pneumatic and hydraulic) panels and various touch screen operator consoles/controls. Automation equipment is typically wi-fi and smart phone enabled - allowing for remote alerts and even remote reset/control of systems. Cybernetics was instrumental in the design and development of Quadron's newest extraction processing equipment.
In addition to providing Quadron with R&D and design services on an ongoing basis, Cybernetics currently provides its automation and design services to over 30 customers across a broad range of industries, including Teck, SkyTrain, Pretivm Gold and the Department of Fisheries, amongst others. More information regarding Cybernetics is available at www.cyberneticcontrols.com.
Rosy Mondin, President of Quadron, stated "With the acquisition of Cybernetics, Quadron immediately increases revenue and will be able to greatly reduce its R&D costs as we continue to design, manufacture, and supply innovative, safe, compliant and efficient cannabis extraction systems and products. Furthermore, Cybernetics meets Quadron's criteria of acquiring revenue generating businesses that also have an opportunity to grow their operations organically."
Pursuant to the Acquisition, on closing, the shareholders of Cybernetics shall receive an aggregate of 2,700,000 common shares of Quadron at a deemed price of $0.25, in exchange for all outstanding Cybernetics shares. Up to an additional 6,150,000 common shares of Quadron may be issued to Cybernetics shareholders, upon Cybernetics meeting certain revenue milestones, of up to $2,500,000, for the fiscal year ending April 30, 2018. The purchase price also includes an offset of $350,000 owing to Quadron.
Closing of the Acquisition remains subject to a number of conditions, including the completion of satisfactory due diligence, the entering into definitive agreements, receipt of all required shareholder, regulatory and third party consents, including CSE approval, and satisfaction of other customary closing conditions. The Acquisition cannot close until the required approvals are obtained. There can be no assurance that the Acquisition will be completed as proposed or at all.
About Quadron: Quadron operates through its two subsidiaries: Soma Labs Scientific Inc. ("Soma") and Greenmantle Products Limited ("Greenmantle"), providing ancillary equipment, products and services, designed and structured to address the complex needs and requirements of cannabis industry participants in Canada and the US. Soma provides research, services and production equipment to the biotech and bioceutical industries, including cannabis extraction and processing equipment that is being leased and/or sold to various industry participants. Greenmantle's business involves the sale of ancillary cannabis products, such as customized dispensing devices (i.e. vaporizer pens) and consumption type products such as branded encapsulation products to authorized cannabis industry participants.
For more information, visit: www.quadroncapital.ca
On behalf of the Board of Directors of
QUADRON CAPITAL CORPORATION
Rosy Mondin, Director
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as "forward-looking statements". Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.Contacts: Quadron Capital Corp. Rosy Mondin Director (604) 346-8118 Investor Relations Contact: KIN Communications Inc. Caleb Jeffries, VP, Investor Relations 1-866-684-6730 NEXT ARTICLE
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