Nicer Canada Corp. Signs Letter of Intent to Acquire JM Information Technology Inc.
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Share Purchase and Cash Deal Would Give Nicer 66.67% Ownership of Leading Chinese Technology Firm
VANCOUVER, Sept. 5 -- Nicer Canada Corp. ("Nicer", "the Company") (TSXV: NC) is pleased to announce that has signed a letter of intent to acquire JM Information Technology (Shanghai) Inc. ("JMIT") in a share and cash transaction.
Under the terms of the agreement, Nicer would purchase 66.67% of JMIT's issued and outstanding shares for CAD$5.5 million. The Price will be paid as to 60% in cash of CAD$3,300,000 and as to 40% by issue and delivery of common shares (the "Nicer Shares") in the capital of Nicer on closing at a price per Nicer Share equal to the closing price of Nicer's shares on the TSX Venture Exchange (the "Exchange") on the last trading day preceding the date of final acceptance of Nicer's filings in respect of the acquisition by the Exchange.
JMIT founder and Chairman Dr. Wang Kaijiang would retain 33.33% ownership of JMIT, which would be a Nicer operating subsidiary. Dr. Wang will continue to lead research and development at JMIT, which holds numerous technology patents. He received a Ph.D. from the Tokyo Institute of Technology and has worked for MECCS, a Japanese business electronics manufacturer, and the Strategic Planning Division of the Integrated Research Institute of Japan.
The acquisition would give Nicer control of JMIT's industry-leading, patented commercial information management Radio Frequency Identification (RFID) software and its other products and facilities, as well as access to its extensive customer base in China. JMIT technology is currently in use in more than 20 enterprises, including some 500 chain stores of JMIT customers such as Zara, American Sun Microsystems (China), Shanghai Hualian Lawson Co, Fujitsu (China) and NEC Information Systems (China).
The acquisition would be is a first step in Nicer's planned expansion into China, which has the concentrated population base and advanced broadband capacity needed for creating ubiquitous IP networks, a key component of Nicer's growth strategy.
"Acquiring JMIT gives Nicer access to the technology and markets we need to grow," said Anne Chen, Nicer's Chief Operating Officer. "It also enables Dr. Wang to continue to participate in the continuing development of RFID technology and assist in the growth of both companies."
Completion of the proposed acquisition is subject to execution and delivery of formal documentation and acceptance of a filing respecting same by the TSX Venture Exchange
About Nicer Canada
Nicer Canada Corp (NC) researches and develops a wide range of Internet Protocol (IP) networks, applications and services for large and small companies and telecommunications carriers. Since the company's founding in 1994, Nicer Canada has developed industry-leading expertise in delivering wired and wireless Internet Protocol (IP) voice, data, video and IPTV solutions to customers worldwide. Headquartered in Burnaby, British Columbia, Canada, NC became a publicly traded company in 2003.
CONTACT: nicertech.com;
Source: Nicer Canada Corp.
