What are your thoughts regarding this NR. Will it save Plaintree?
newswire.ca
Plaintree enters into amalgamation agreement with Targa Group Inc.
Completion of transaction will result in amalgamation
of Targa businesses into Plaintree
OTTAWA, Aug. 16 /CNW/ - Plaintree Systems Inc. (TSE: LAN, NASD OTC BB:
LANPF) announced today that the company has entered into an amalgamation
agreement with Ottawa-based Targa Group Inc. The agreement is expected to
result in Plaintree assuming control of Targa's businesses in exchange for
Plaintree shares.
A privately owned company with operations in Ottawa, Toronto, Arnprior
and Charlotte, North Carolina, Targa Group Inc. designs and manufactures
electronic equipment, primarily for the aerospace industry.
The deal, subject to approval by Plaintree's shareholders within 90 days,
is conditional on the conversion of outstanding Plaintree preferred shares
into common shares. If approved, Targa Group's shareholders will then own 49%
of Plaintree's shares.
The combined operations will continue under the name of Plaintree Systems
Inc. David Watson, Targa Group's CEO, will become Plaintree's president and
CEO upon completion of the transaction. Jay Richardson, Plaintree's current
president and CEO, will assume a position on the company's Board of Directors.
''This is an exciting time for all of us,'' said David Watson.
''Combining Targa's healthy financial performance and project management with
Plaintree's respected technology and excellent employee base will generate
immediate and substantial benefits to both companies.''
''We're thrilled at the opportunities this new relationship brings to
Plaintree,'' said Jay Richardson. ''An amalgamation of our companies allows us
to finally move forward with confidence to serve our customer base of more
than 20,000 installed units, and broaden Plaintree's product family. Moreover,
this transaction will strengthen Plaintree's senior management team in a very
positive way.''
About Targa Group
A privately held company established in 1993, Targa Group Inc. of Nepean
(Ottawa) has ownership in four business operations, which combined, generate
approximately CDN$9 million in revenues and maintainable net income of over
CDN$1.6 million per year:
TARGA ELECTRONICS SYSTEMS INC. of Ottawa, Canada and Charlotte, North
Carolina manufactures and designs ruggedized data storage systems for
military and avionics applications.
HYPERNETICS LTD., of Arnprior, Ontario, Canada, designs and manufactures
cockpit instrumentation and components for anti-skid systems for
aircraft.
TIDAL QUALITY MANAGEMENT CORP. of Ottawa owns property of 25,000 square
feet, for lease to high technology companies.
WADE-TECH CAD AND GRAPHICS INC. of Toronto and Ottawa, restructured from
the assets and key personnel of the former Norman Wade Company, supplies
products to the engineering and architectural community.
Targa Group's mandate is to build long-term shareholder value and
consistent earnings through a growth strategy combining internal expansion and
acquisition.
About Plaintree Systems
A publicly held company, founded in 1988, Plaintree Systems develops and
sells local area network switches, maintaining a reputation for high quality
products and technical support. Headquartered in the Ottawa region, Plaintree
also maintains operations in the US. Plaintree is publicly traded in Canada
on the TSE and in the US on the NASD OTC Bulletin Board. Plaintree maintains
a World Wide Web site on the Internet at plaintree.com.
This press release includes statements that are forward looking and based
on current expectations. The transaction is subject to certain conditions
including shareholder approval, and therefore, a risk of non-completion. 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
SEC and Canadian regulatory authorities, including the Company's prospectus
dated May 20, 1997.
%SEDAR: 00001576E
-30-
For further information: Jay Richardson, President & CEO, Plaintree
Systems, Tel: (613) 831-8300, E-mail: jrichardson@plaintree.com; David
Watson, President and CEO, Targa Group Inc., Tel: (613) 727-9876, E-mail:
targa@netcom.ca; Cathy Browne, High Road Communications, Tel:
(613) 236-0909, E-mail: cbrowne@highrd.com |
