OTTAWA, Ontario--(BUSINESS WIRE)--Plaintree Systems Inc. (Plaintree, traded on CSE under the symbol NPT) today announced that it has signed an agreement to purchase all of the share capital of Spotton Corporation of Arnprior, Ontario. The transaction is expected to close on April 1, 2014.
Spotton is a designer and manufacturer of high end custom hydraulic and pneumatic valves and cylinders for the industrial and oil and gas markets.
Spotton Corporation will now be operated as a wholly-owned subsidiary of Plaintree. . Currently, Spotton Corporation operates out of Plaintree’s Arnprior location and it is anticipated that the business will continue to be carried on in its current location without interruption.
The consideration to be paid Plaintree for the shares of Spotton Corporation will be nominal. Spotton currently is indebted to Plaintree in the amount of $1.7 million.
“This is a timely acquisition for Plaintree,” said David Watson, Plaintree CEO. "Since 2011 Spotton has increased its sales by over 200 percent and the potential is there for continued strong growth.”
About Plaintree Systems
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, and the newly formed Arnprior Fire Trucks Corp., a manufacturer of high end fire and emergency vehicles.
The Electronics Division includes the legacy Hypernetics, Summit Aerospace USA Inc. and Plaintree free space optics (FSO) businesses. Spotton will now join this product line for reporting purposes.
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 & 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.CNSX.ca 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, 2013 and related management discussion and analysis.
Canadian National Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
For further information:
Plaintree Systems Inc.
Anna Pelkey, 613-623-3434 x2261