TSE SYMBOL: HCI
NASDAQ SYMBOL: HCIFF
MAY 16, 2000
HCI to acquire AND Biometrics
BURLINGTON, ONTARIO--
HCI today announced the signing of a letter of intent to acquire a
50% interest in AND Biometrics for $5 million U.S.
HCI (TSE: HCI) today announced the signing of a letter of intent
with AND ARTIFICIAL NEURAL DEVICES CORPORATION ("AND CORP") to
acquire a fifty (50%) interest in AND Biometrics for $5 million US
with $2 million payable in cash and the remainder as a $3 million
debenture convertible over a two year period at rates of 50 cents,
75 cents and $1.00. AND Corporation, an arm's length corporation
based in Toronto, is a pioneer, the patent holder, and the leading
provider of Holographic/Quantum Neural Technology ("HNeT"). HNeT
will provide several applications, the first of which is the Face
Recognition System ("FRS") which are both practical and extremely
accurate. This system will play a key role in industries such as
banking, Internet transactions, manufacturing, governments,
airport and other security applications and the medical industry.
AND Biometrics is the owner of the exclusive worldwide HNeT
license for face and speech recognition applications. HNeT
Technology is expected to play a key role in a wide variety of
future developments using Neural Technology. Such applications
include a Speech Recognition System (SRS) in connected English and
other languages such as Chinese or Russian.
HNeT Technology's applications and devices will provide critical
entry of the Face Recognition System (FRS) into diverse areas and
are expected to enable an array of applications to enter the
security market.
These products are believed to be vitally important in eliminating
real security concerns in high-risk sectors with large-scale
applications such as banking, airports, and Internet transaction
security. AND Biometrics devices and applications will have
endless possibilities in many fields.
HNeT with its broad suite of capabilities through this technology
is well positioned to deliver new integrated applications and
devices to meet the emerging needs as a direct result of the new
global economy. Growing out of the research roots from its former
parent company (AND Corp.), now a joint venture organization
between AND Corp. and HCI, AND Biometrics is now a full capability
source of design, development, prototyping and marketing for all
recognized forms/applications for this technology.
Once the due diligence phase is complete, a closing on or before
June 30, 2000 is anticipated subject to certain closing
conditions, concurrent with the execution of the joint venture
agreement. This transaction is subject to regulatory approval. AND
Corporation will continue to provide the research and development
expertise required and HCI shall co-ordinate the marketing,
finance and real market feedback.
"Holographic/Quantum Neural Technology devices are clearly the
next great innovation for the security industry", said John
Sutherland, Chairman and CEO of AND Corp. (AC). "We believe this
joint venture will enable us to actualize our many years of
research and development in the Neural Technology field. HCI's
participation will give us that important penetration into the
"new economy" where our customers will realize the exponential
returns from this technology. We, AND Corp. can now fully explore
the huge potential that HNeT Technology offers with input from
industry on an on-going basis. Our aim is to explore other
relevant applications and solutions that we intend to offer in the
future." "Our colleagues at AND Corp. are truly leaders in this
field and we are thrilled to be on the same team," said Jerry
Janik, President and CEO of HCI.
About HCI
HCI is a diversified, Canadian-controlled company which operates
through autonomous subsidiaries and partnerships. When completed
AND Biometrics, the leading-edge provider of neural technology
with applications for the financial, manufacturing, security and
medical sectors. Heritage Concepts, branded restaurant
environments, the foodservice and franchise sector; Platinum
Intermedia, growth partnerships in the audio communications
industry and internet-related businesses; Real Estate Holdings,
real property investments. HCI shares trade on the Toronto Stock
Exchange under the stock symbol HCI. |
