Here are the press releases associated with the sale:
1)
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: LEGACY STORAGE SYSTEMS INTERNATIONAL INC.
TSE SYMBOL: LEG
DECEMBER 22, 1996
Legacy Update
MARKHAM, ONTARIO--LEGACY Storage Systems International Inc. (TSE -
"LEG") is pleased to announce the sale of the assets of its
SmartARRAY business, the appointment of a new Vice President
Finance and the implementation of its corporate name change.
The sale of the assets of the disk based SmartARRAY RAID business,
and the rights to the Legacy name follows Legacy's decision to
focus the Company's resources on the tape based products developed
and marketed by its U.S. subsidiary Tecmar Technologies, Inc.
"We are in transition to a company completely focused on the
development and manufacture of high performance tape data storage
products that can be sold in volume." says David Killins, Chairman
and CEO of Legacy Storage Systems International Inc. "The Tecmar
name is well known and respected in the tape data storage
marketplace, and is synonymous with quality products. Our recent
new product announcements serve to reinforce our commitment to
grow the business and have caught the attention of several trade
analysts."
The newly formed company purchasing the SmartARRAY assets is
Legacy Storage Systems Corp., a private company owned and operated
by Peter and John Whyte. Terms of the purchase include the
payment of $152,000 and assumption of outstanding warranty
obligations.
With the completion of the transaction, Legacy Storage Systems
International Inc. has changed its name to Tecmar Technologies
International Inc. as approved by shareholders on October 2, 1996.
The TSE stock symbol will change from LEG to TTI early in January
1997.
David Killins announced that William Chappell, Chief Financial
Officer of its U.S. subsidiary, Tecmar Technologies, Inc., has
also been appointed Vice President, Finance of the parent company,
taking over finance responsibilities from Robert McQuade who
recently left the Company.
Tecmar Technologies International Inc. is a leading developer and
manufacturer of high performance tape data storage technologies.
Its product-lines include tape drives and tape backup solutions
(tape drives bundled with software). Tecmar Technologies products
are sold to Original Equipment Manufacturers (OEMs), distributors
and Value added resellers. Its products include Wangtek QIC
(Quarter-Inch Cartridge) tape drives, WangDAT 4mm (Digital Audio
Tape) drives and ProLine solutions for network environments.
2)NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: LEGACY STORAGE SYSTEMS INTERNATIONAL INC.
TSE SYMBOL: LEG
DECEMBER 22, 1996
LEGACY Storage Systems International Inc. is pleased to
announce the sale of its V1500 (VAST) business unit
MARKHAM, ONTARIO--LEGACY Storage Systems International Inc. (TSE -
"LEG") is pleased to announce the sale of its subsidiary
Quasarmetrics Inc. (the holder of the ISTS near-on-line license)
and its V1500 Network Storage Server (previously called VAST)
related assets to DATAVATION Inc., a corporation controlled by
Donald Waugh. The Institute of Space and Terrestrial Science (the
V1500 licensor) and Wayne Cannon have consented to the transfer of
the V1500 license.
"I believe this agreement serves the interests of Legacy
shareholders in three ways." says David Killins Chairman and CEO
of Legacy. "We have removed a major cost center from the
business, we have reduced the number of outstanding shares by 2
and a half percent, and, if all goes well, we will have improved
our net cash by close to $1 million. We will now be able to focus
our time and resources on the exciting new products being
developed and marketed by our U.S. subsidiary, Tecmar
Technologies, Inc." Mr. Killins also commented, "We continue to
believe that VAST has a significant niche in the tape storage
marketplace, however, the business structure required for VAST no
longer fits with the Legacy model. Legacy now focuses on tape
data storage products suitable for large volume distribution."
In the following paragraphs all dollars are Canadian and all
shares are post consolidation.
Terms of the agreement provide for the release and sale of Waugh's
escrowed 171,400 shares and discharge of a promissory note of
approximately $16,000 owing by Waugh to Legacy. Waugh will pay an
initial sum in cash plus the after tax proceeds of the sale of
certain of these shares to Legacy for a total of approximately
$360,000. Additional assets relating to the V1500 system,
including inventory, have been delivered to Waugh for sale on a
consignment basis.
ISTS consented to the transfer of the V1500 license, the surrender
for cancellation of approximately 20,000 of its shares held in
escrow, and the discharge of debt of approximately $123,000 owing
by Legacy to ISTS for research and development services. In
return, Legacy agreed to the early release from escrow of
approximately 54,000 shares.
Wayne Cannon has agreed to surrender 204,900 escrowed common
shares for cancellation in return for the release of 73,700 shares
from escrow and the discharge of a promissory note of $24,000
owing to Legacy.
"The V1500 technology offers outstanding performance and economy
for the storage and delivery of vast amounts of data over computer
networks. The system is particularly suited for image-based
computer applications, including printing, graphic arts, medical
imaging, CAD/CAM and digital animation. I have great confidence
in the future of this technology." said Don Waugh.
Tecmar Technologies International Inc. is a leading developer and
manufacturer of high performance tape data storage technologies.
Its product-lines include tape drives and tape backup solutions
(tape drives bundled with software). Tecmar Technologies products
are sold to Original Equipment Manufacturers (OEMs), distributors
and Value added resellers. Its products include Wangtek QIC
(Quarter-Inch Cartridge) tape drives, WangDAT 4mm (Digital Audio
Tape) drives and ProLine solutions for network environments. |
