ZTEST Completes Acquisition of 53.26 Percent of Chessen U.V. Systems Inc. in Share for Share Exchange Offer Valued at $1,734,569
MISSISSAUGA, ONTARIO--ZTEST Electronics Inc., ("ZTEST") is pleased to announce that it has acquired 6,125,000 common shares of Chessen U.V. Systems Inc. ("Chessen"), representing 53.26 percent of the outstanding voting equity of Chessen, in consideration for the issuance of an aggregate of 1,020,835 common shares of ZTEST and 306,250 warrants with each warrant exercisable for two (2) years following September 9, 1997 to acquire a further common share of ZTEST at $1.75.
The transaction closed effective September 9, 1997, subject to the fulfilment of certain conditions with respect to the business and sales performance of Chessen, for the benefit of ZTEST, that, if not completed by Chessen, could result in some of the common shares issued in relation to this transaction being returned to the treasury of ZTEST for cancellation.
Chessen is involved in the field of Advanced Surface Engineering Technologies, marketing its advanced thin film systems and custom coating services throughout the world. the commercialized products fall into two (2) major product groups: (1) thin film Physical Vapour Deposition (PVD) technologies; and (2) Laser and U.V. radiation technologies.
The PVD technology, is an ultra high vacuum physical vapour deposition process in which atoms or molecules from a vaporization source reach the substrate without colliding with the residual gas molecules. This PVD process, which is energy efficient and environmentally friendly, produces a wide range of wear resistant, anti-corrosive, thin hard films. Chessen very successfully demonstrated their new PVD technology at the world's largest Manufacturing Technologies Show (EMO) in Hanover, Germany last month, receiving immediate requests for many system sales quotations.
The Laser and U.V. radiation technologies would be best described as being radiation curable organic coatings and surface modifications of polymers with electromagnetic radiation. The initial focus, from a commercialization point of view, is the introduction of a line of processors to increase production speeds and reduce rejection rates for specialized rubber products and painting materials in the automotive industry.
This new Strategic Partnership with Chessen is the third for ZTEST. The other two (2) Strategic Partnerships are with UNIQRYPT Technologies Inc. of Mississauga, Ontario and Nexsys Commtech International Inc. of Waterloo, Ontario.
ZTEST, in addition to its proprietary line of Automatic Test Equipment, offers Strategic Partner services in electronic design, development and manufacturing to emerging high tech companies in return for long-term manufacturing contracts, fees for services and equity positions.