FOR IMMEDIATE RELEASE
Empower Technologies™ Receives TSXV Final Approval to Acquire “Telco”
June 28, 2013 – Richmond, British Columbia, Canada – Empower Technologies Corporation (TSX.V: EPT) (“Empower” or the “Company”), further to the April 10, 2013 news release, is pleased to announce it has received from TSX Venture Exchange (“TSXV” or the “Exchange”) the final approval to purchase 100% of AIC Global Communications Inc. (“AIC”, previously undisclosed “Telco”) a wholly owned subsidiary of Y2K Investment Inc. (“Vendor”), a privately held corporation.
AIC was founded in 1992 as a CRTC approved Long Distance Telecommunications Company in Canada. Since then, AIC has been providing innovative retail telecommunication products and services to the Canadian market, as well as wholesale bi-lateral long distance traffic termination service for national and international telecommunications carriers using multiple class 4 and class 5 soft switches (Software based Central & End Office Telephone Exchanges).
AIC branding is especially strong with new Canadians from Asia because of their superior language of origin customer care, high quality and price competitive telecommunications for voice and Internet access services. Its retail products and services include legacy PSTN (Public Switched Telephone Network) and VoIP based Long Distance telephone services, ADSL and Cable internet access services, prepaid telephone cards, traditional long distance and overseas call back telephone services.
AIC is now expanding into business VoIP (Voice over Internet Protocol) markets using Cisco devices and customer premises equipment (CPE). Targeted customers are small to medium sizes enterprises (SME). As of today, AIC has delivered Smart Business VoIP phone services and Hosted IP PBX business systems to the SME market utilizing its Cloud based platforms. Plans are in place to deploy Managed Business Solutions to the SMEs across Canada this year. Revenue growth will be through its existing retail locations, two in the Greater Vancouver, one in Calgary and one in Toronto. AIC current annual revenue is approximately $2 million and it is EBITDA and cash flow positive.
By acquiring AIC, Empower has gained a very strong and recognizable brand in the Asian Canadian market, a sales and marketing platform for its embedded and video technologies, products and services, and a telecommunication operating system platform. This transaction increases the revenue base of the entire Empower Group immediately. The acquisition provides AIC the ability to access the much needed growth capital from the public market. This enables AIC to grow its VoIP phone services and fuel its expansion to a full service SME Information Technology (“IT”) and managed business solutions market which includes security and surveillance, cloud based applications and other IT products and services.
AIC will leverage Empower’s embedded hardware and software expertise to offer state-of-the-art communication, mobile and video technologies, products and services to their customers. For example, Empower’s Image Signal Correction (ISC) and Image Motion Stabilization (IMS) enabled surveillance camera will be sold through AIC’s sales and marketing channels to shopping malls, schools, universities, and commercial/industrial buildings for their cloud based video surveillance network needs.
The primary objective of AIC’s expansion in the near term is to achieve rapid revenue growth and market penetration in metro Vancouver, Calgary and Toronto. Over the longer term, Empower is positioning AIC as a dominant VoIP phone service, security and surveillance, IT and managed business solution, products and services provider for small and medium enterprises and to leverage Empower’s advanced embedded and video technologies for a competitive advantage.
The Closing date has been extended from June 30, 2013 to on or before July 31, 2013 for the parties to prepare the closing documents and to complete the transaction.
“This is an exciting time for AIC. Our brand equity is very strong and the Company is on track to become a dominant, preferred and reliable one stop telecommunications and IT solutions provider. Empower gives us the ability to access growth capital and to leverage our complementary technologies and expertise.” Said Victor Fung, CEO of AIC.
“This is the best revenue generating asset we have ever encountered. AIC will provide Empower Group with an immediate revenue surge, a very strong brand, and a sales and marketing platform for Empower to leverage and to sell Empower’s core embedded and video technologies. Empower also has ready access to growth capital to ensure AIC has sufficient working capital to fuel its rapidly growing VoIP phone and managed business solutions market. This is a win-win transaction for Empower and the Vendor stakeholders.” Said Paul Leung, CEO of Empower Group.
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.
This news release includes forward-looking information within the meaning of applicable securities laws. All statements included in this news release that are not historical facts are forward looking statements, including statements regarding management’s plans for the Company’s business and anticipated future performance of the Company. Such statements are based on management’s current estimates, assumptions and projections using available information. These statements are not guarantees of the Company’s future performance and are subject to risk uncertainties and other important factors, which could cause the Company’s actual performance to be different from that projected. Factors that could cause actual results to differ materially from these forward- looking statements include those risks set out in the Company’s public documents filed on SEDAR at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
About Empower Technologies™
Founded in 2000, Empower Technologies (TSX.V: EPT) has transformed from an embedded technology company to a full-fledged innovative technology, products and services and manufacturing enterprise. Empower Technologies as a group caters to security and surveillance, military, automotive and transportation, healthcare, industrial control and consumer electronics industries. Under the Empower Group, the Company has three operating divisions – Empower Embedded Engineering, Empower Imaging Laboratories and Empower Defense Systems. For more information, please visit www.empowertechnologies.com.
Empower’s brands are “LEOs®”, Linux-based embedded operating systems, “BullsEye”, Real-Time Video Stabilizer, “PowerPlay™”, smart consumer electronics.
More Information on Empower Technologies: www.empowertechnologies.com
Chairman, President and CEO
Empower Technologies Corporation
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Empower Technologies, LEOs, PowerPlay and BullsEye are the trademarks of Empower Technologies, Inc. All other brands are trademarks of their respective owners.