August 17, 1998 - ZTEST Announces Fifth Strategic Partnership
MISSISSAUGA, ONTARIO--ZTEST Electronics Inc., ZTST - CDN, ("ZTEST") is pleased to announce a new Strategic Partnership agreement with Med-Minder Enterprises Inc. ("Medmin") of Oakville, Ontario.
ZTEST was retained by Medmin to develop the hardware and software components for Medmin's Proprietary System for the dispensing of medications consisting of a dispenser device, proprietary PC-based software able to communicate with existing programs used by pharmacies and a communication protocol between the dispenser and the software. ZTEST will be paid a manufacturing fee of $120,000 which will be settled by the issuance of 900,000 units ("Units") of Medmin with each unit consisting of one (1) Class "A" Share and 0.3 of a warrant with each full warrant exercisable to acquire a further Class "A" Share at $0.20 for period of one (1) year following acquisition of the Units, which may be acquired within two (2) years following completion of the development of the System. ZTEST also has an option to acquire 1,000,000 Class "A" Shares of Medmin at $0.15 per share within sixty (60) days following the acceptance of the pilot project being undertaken to develop the System. If ZTEST exercises its warrants and its options, it will hold a 34.5 percent interest in Medmin on a fully diluted basis. In addition to equity ownership in Medmin, ZTEST also has the exclusive manufacturing rights to the components of the System.
ZTEST's other four (4) Strategic Partners, Nexsys Commtech International Inc. of Waterloo, Ontario, UNIQRYPT Technologies Inc. of Mississauga, Ontario, Chessen U.V. Systems Inc. also of Mississauga, Ontario and Gametele Systems Inc. of Oakville, Ontario continue to make progress in the development and marketing of their respective products. It is anticipated that ZTEST's exclusive manufacturing arrangements with these strategic partners will continue to result in further revenue and profit growth in the coming quarters.
In addition to its proprietary line of Automatic Test Equipment, ZTEST 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.