May 14, 2012 – Richmond, British Columbia, Canada – Empower Technologies Corporation (TSX.V: EPT) (“Empower”) announces, further to the Northstar Network Ltd. (NNL) purchase update on March 30, 2012, Empower and Northstar Electronics Inc. (Northstar) have agreed to certain changes in the purchase price and the payments as follows:
Subject to certain conditions, Empower will pay $40,000 of the cash portion of the purchase price to Northstar in advance on or before May 18, 2012 and another $100,000 on closing and pay a further $100,000 in 30 days after closing. For the equity portion of the purchase price, $340,000 in Empower common shares will be issued at closing and a further $320,000 in shares at the end of 18 months from closing subject to NNL having incurred at least $6mm or more in revenue within the last 18 months. In both cases, Empower will issue (or arrange to be transferred) to Northstar such number of free trading Empower shares equal to the amount then due divided by the then 10 day weighted average closing price of Empower’s shares on the TSX Venture Exchange and subject to escrow provisions imposed by TSX Venture Exchange. There shall be no other changes except noted above.
“It’s good that Northstar and Empower were able to work together to find a mutually acceptable compromise to make the closing of this transaction possible. Northstar Electronics will now focus on the sonar business and other business sectors, knowing the Northstar Network subsidiary we created is in good hands,” said Dr. Wilson Russell, CEO of Northstar Electronics.
“This is the best of time for Empower. With the acquisition of defense contractor Northstar Network, Empower has completed its commercialization effort and enter a new phase of corporate development. The Company can now utilize the powerful sales platform Northstar Network has to sell Empower’s state of the arts embedded and image processing technologies in defense industry that has real needs and is willing to pay the price to save lives and provide better security. For the longer term, Empower will continue to execute the plan through revenue growth and acquisitions if and when the conditions are right. We are also very pleased to have Northstar Electronics to take most of the payment in equity rather than cash for the sale of its subsidiary to share in the future success. This is a very strong vote of confidence in Empower’s plan for Northstar Network to grow and to flourish,” said Paul Leung, CEO of Empower Technologies.
“We are pleased the purchase of Northstar Network by Empower is finally coming to a close very soon. We look forward to work closely with Empower and Northstar Electronics in the future in their respective businesses to expand and to grow,” said Gordon Monk, Principal of Performance Capital.
Empower expects the closing of the purchase of Northstar Network on or before May 31, 2012.
Performance Capital, Principal Gordon Monk, is acting as the advisor to Empower on the Acquisition.
The purchase of Northstar Network by Empower is subject to acceptance by TSX Venture Exchange.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Empower Technologies™
Founded in 2000, Empower Technologies (TSX.V: EPT) is an innovative company that brings the power and flexibility of the LEOs® (Linux Embedded Operating System) to the dynamic embedded computing Industry and the emerging Intelligent Appliance Market, through their development of Linux-based operating software, embedded system technologies and solutions.
The products and services that form the base of its business activities include an embedded system development platform for LEOs®, based on Texas Instruments™ embedded CPU platform, that fulfill the needs and demands of developers and the embedded computing Industry. Empower is continuing to develop LEOs® and newer versions of embedded CPUs in line with Texas Instruments™.
By uniting top professionals from within the computer industry and developing quality partnerships and strategic alliances, Empower is committed to being the leading developer of Linux-based operating software and embedded system technologies and solutions for electronics manufacturers and developers.
Empower’s brands are “LEOs®”, “LinuxDA™”, Linux-based embedded operating systems, “BullsEye” Video Imaging Technology, “PowerPlay™”, smart consumer electronics.