Ztest Electronics Inc. - Final Agreement Reached on Key Points of Nexsys Manufacturing Agreement
MISSISSAUGA, ONTARIO--ZTEST Electronics Inc., ZTST - CDN, (the "Company") is pleased to announce that it has reached a final agreement on key points of a manufacturing agreement with Nexsys Commtech International Inc. of Waterloo, Ontario ("Nexsys") pursuant to which the Company has been appointed the exclusive prime contractor and coordinator of the manufacturing requirements of Nexsys for an initial term of two (2) years, which agreement is renewable thereafter annually. These manufacturing requirements will initially include all components of Nexsys' Automated Meter Reading ("AMR") product line. The Company reserves the right to manufacture all parts themselves or subcontract various components to ZTEST suppliers where applicable.
The Company looks forward to prospect of increasing revenues from this manufacturing agreement, as Nexsys seeks to expand its customer base along the lines of a recently announced contract with the City of Waterloo. In their press release of March 3, 1997, the City of Waterloo announced that they had signed a joint venture agreement with Nexsys for a project that could save taxpayers money while it makes the city's 23,000 homes and businesses safer, smarter and even more energy efficient. The total cost of the pilot project is estimated at $450,000. The ultimate goal, as planned, of connecting every Waterloo household would cost about $8 million.
The Company, the largest single shareholder of Nexsys, currently holds 9,264,067 common shares of Nexsys representing 43.8 percent of the issued and outstanding common shares of Nexsys. The Company also holds 793,733 Class "A" Warrants to purchase common shares of Nexsys at $0.10 per share until November 30, 1998 and 1,337,047 Class "B" Warrants to purchase common shares of Nexsys at $0.36 per share until November 30, 1999.
The Company offers strategic partner services in electronic design and manufacturing to emerging high tech companies in return for long-term manufacturing contracts together with a combination of fees and equity positions.