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Microcap & Penny Stocks : SMY - SAMSys Technologies Inc -- Ignore unavailable to you. Want to Upgrade?

To: Montana Wildhack who wrote (82)	4/7/2002 8:52:34 PM
From: Montana Wildhack	Read Replies (1) \| Respond to of 342

TORONTO, April 5 /CNW/ - SAMSys Technologies Inc. ("SAMSys"), (SMY:CDNX), of Toronto, a provider of Radio Frequency Identification (RFID) reader hardware, today announced the closing of a CDN $8.8 million private placement to BTG International Limited ("BTG"), the UK-based global technology commercialization company. In return BTG has received 8,000,000 SAMSys common shares at a price of $1.10 per share representing 27.9% of the outstanding common shares of the company (23.6% on a fully diluted basis). The common shares issued to BTG are subject to a regulatory 12-month hold period from the closing date of the private placement. SAMSys will use the proceeds primarily to fund working capital requirements for the ongoing commercialization and deployment of its RFID reader technologies and expanded service offerings. SAMSys also announced today the finalization of a joint venture with BTG to develop technologies addressing the rapidly growing Ultra High Frequency (UHF) segment of the RFID marketplace. Each party has committed to an investment of CDN $800,000 and has contributed intellectual property or know how to a focused development program. SAMSys and BTG have agreed that the benefits of such program will be subject to revenue sharing arrangements. If the program achieves specified technical milestones, at BTG's option in lieu of revenue sharing, it may grant SAMSys a worldwide fully paid and exclusive license to the technology. In consideration of the joint venture and other intellectual property rights, SAMSys has agreed to issue 2,500,000 non-voting convertible redeemable shares to BTG. These shares are convertible on a one to one basis into SAMSys common shares only if the program's technical milestones are achieved and BTG elects to grant SAMSys the license. These shares will otherwise be redeemable for nominal consideration. Certain of the documents relating to the non-voting convertible redeemable shares are being held in escrow pending necessary corporate filings once the current public service strike in Ontario has ended. Cliff Horwitz, Founder and CEO of SAMSys, added: "This investment represents the true "coming of age" of SAMSys. It provides the necessary working capital to enable the build out of an infrastructure which will pave the way for a comprehensive commercialization strategy incorporating all of the areas of the Company's expertise. But, it also is the result of an exhaustive evaluation and investigation by BTG into the current and future direction of the RFID marketplace. We look forward to the collaboration and input from our new partner, and we are all confident that the combination of new resources and current strengths will result in the success for which we have been striving." Ian Harvey, BTG's CEO, commented: "We are delighted to be associated with SAMSys through our direct investment and the joint venture. We look forward to working with the SAMSys team, and to seeing the company become a leader in the rapidly developing RFID market place." RFID has a broad range of potential applications, including inventory management, parcel and container tracking, airline baggage/passenger tracking and supply chain management. The worldwide market for RFID is estimated by Venture Development Corp. to be growing at 27% CAGR, with projected sales in 2002 of $1.5 billion. About RFID: RFID is a wireless electronic labelling/data collection system that uses radio frequency signals as a communication medium between tag protocols and readers by which to identify and count closely spaced items without the need to separate or scan individually tagged objects. RFID offers numerous advantages over optical barcode systems and other Automatic Data Collection technologies. It can be used in a variety of applications, where it is desirable to remove dependence on Line of Sight, Physical Contact and Operator Intervention. Today's state of the art RFID technologies also include Read/Write capabilities as well as Anti-Collision algorithms, permitting the simultaneous reading of a large number of tagged objects, while ensuring that each tag is read only once. Potential applications are broad and varied, and would include Warehouse/Storage, Parcel and Container Tracking, Stock Control/ Inventory, Anti-theft for Asset Protection, Airline Baggage/ Passenger Tagging, and Supply Chain Management. A further emerging market for this technology exists in the field of contactless smart cards. This application is fast growing in popularity for financial transaction processing. A rapidly emerging industry, the RFID market is projected to grow at 27% CAGR, with annual sales in 2002 of $1.5 billion, according to Venture Development Corp.