ARNPRIOR, ON / ACCESSWIRE / June 6, 2017 / Plaintree Systems Inc. (the "Company") (CSE: NPT) today announced that it has completed the sale of assets and business of Arnprior Fire Trucks Corp. (AFTC), which constituted the Company's business of the manufacturing of high end fire and emergency vehicles (the "Fire Truck Business"), to 9584358 Canada Ltd. o/a Eastway Fire and Rescue Vehicles ("Eastway"), all as more fully described below.
Sale of Fire Truck Business
The Company and Eastway entered into an asset purchase agreement (the "Purchase Agreement"), dated May 25, 2017, pursuant to which Eastway agreed to acquire the Fire Truck Business from the Company as a going concern. The purchase price paid by Eastway consisted of nominal cash consideration and the obligation for Eastway to complete the outstanding existing fire truck contracts. Eastway has also agreed to a lease to use the Company's premises to carry on the business for a one year period. Following the transaction, the Company will cease the operations of the Fire Trucks Business.
David Watson, the Company's President and Chief Executive Officer, commented by stating, "AFTC built a very high quality firetruck and had an excellent reputation in the business. However, due to the very competitive nature of the firetruck business in Ontario, AFTC was never able to maintain the volume of trucks required to attain profitability. Combining Eastway and AFTC operations should allow Eastway to reach the sales volumes required. Plaintree will benefit from the lease arrangement and subcontracting out its production floor assets."
About Plaintree Systems Inc.
Plaintree has two diversified product lines consisting of Specialty Structures and Electronics. The Specialty Structures Division includes the former Triodetic Group, with over 40 years of experience, is a design/build manufacturer of steel, aluminum and stainless steel specialty structures, such as commercial domes, free form structures, barrel vaults, space frames, and industrial dome coverings, Spotton Corporation, a design and manufacturer of high end custom hydraulic and pneumatic valves and cylinders, and the recently acquired Madawaska Doors, a design and manufacturer of premium solid wood doors. The Electronics Division includes the legacy Hypernetics, Summit Aerospace USA Inc., and Plaintree free space optics (FSO) businesses. Plaintree's FSO systems transmit data at high speeds using beams of light instead of traditional radio frequency, which can suffer from congestion. Hypernetics was established in 1972 and is a manufacturer of avionic components for various applications including aircraft antiskid braking, aircraft instrument indicators, solenoids, high purity valves and permanent magnet alternators. Summit Aerospace USA Inc. provides high precision machining to the aerospace and defense markets. Our facility includes 5 axis CNC precision machining of complex castings and large ring parts such as turbine and assembly shrouds, as well as assembly and pressure seals. Summit will support requirements from concept, prototype and throughout production.
Plaintree's shares are traded under the symbol "NPT." Shareholders and Investors can access Company information on CSE's website and receive full Company disclosure monthly. For more information on Plaintree or to receive stock quotes, complete with trading summaries, bid size and ask price, brokerage house participation, insider reports, news releases, disclosure information, and CSE and SEDAR filings, visit the CSE website at www.thecse.com or the Company's website at www.plaintree.com.
Plaintree is publicly traded in Canada on the CSE (NPT) with 12,925,253 common shares and 18,325 class A preferred shares outstanding.
This press release may include statements that are forward-looking and based on current expectations. The actual results of the company may differ materially from current expectations. The business of the company is subject to many risks and uncertainties, including changes in markets for the company's products, delays in product development and introduction to manufacturing and intense competition. For a more detailed discussion of the risks and uncertainties related to the company's business, please refer to documents filed by the company with the Canadian regulatory authorities, including the annual report of the Company for the fiscal year ended March 31, 2016 and related management discussion and analysis. Canadian Securities Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
For further information: (613) 623-3434 ex 2223, Lynn Saunders.
SOURCE: Plaintree Systems Inc.