November 1, 2012 – Richmond, British Columbia, Canada – Empower Technologies Corporation (TSX.V: EPT) (“Empower” or the “Company”) is pleased to announce that it, together with Northstar Electronics, Inc. (OTCPK: NEIK) (“Northstar”), has negotiated a settlement with Northstar Network Ltd.’s (“NNL”) major creditor with respect to loans that will be outstanding at the closing of the Company’s previously announced acquisition (the “Acquisition”) of NNL.
The settlement reduces NNL’s maximum exposure to the creditor from approximately $3,000,000 to $1,500,000. Further, provided NNL and Northstar meet the required payment obligations and otherwise maintain the loan in good standing, NNL may fully satisfy approximately $1,500,000 upon payment of approximately $260,000 over a period of 48 months. The conditions include that NNL make the first payment of $30,000 toward the $260,000 prior to the closing of the Transaction and in any event, not later than December 14, 2012. Empower has provided no guarantees in connection with the settlement.
Empower and Northstar view the settlement as a significant and positive development for NNL moving forward. Upon satisfaction of the first $30,000 payment, Northstar and NNL will receive the creditor’s written consent to complete the Acquisition. The parties have accordingly agreed to extend the outside date for completion of the transaction to November 30, 2012 (“Outside Date”).
Empower will provide a further update as soon as it is in a position to satisfy this condition and the remaining TSX Venture Exchange conditions and close the Acquisition. It is both Empower and Northstar’s intention to close the Acquisition as soon as possible, in advance of the Outside Date.
Closing of the Acquisition is subject to final acceptance from the Exchange.
Performance Capital, Principal Gordon Monk, is acting as the advisor to Empower on the acquisition.
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.