Cantronic Systems Inc.
TSX VENTURE : CTS

Cantronic Systems Inc.

June 12, 2009 12:47 ET

Cantronic Systems Inc. Provides First Default Status Report

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 12, 2009) - Cantronic Systems Inc. ("Cantronic" or the "Company") (TSX VENTURE:CTS) provides this bi-weekly Default Status Report in accordance with National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults ("NP 12-203"). On June 1, 2009, Cantronic announced that it was not able to file its audited annual financial statements, management's discussion and analysis and related certifications (collectively, the "Statements") for the fiscal year ended January 31, 2009 within the prescribed time.

In accordance with NP 12-203, and as previously announced, the Company applied to the British Columbia Securities Commission (the "BCSC") for a management cease trade order to be imposed against the Company's Chief Executive Officer. On June 4, 2009, the BCSC issued a temporary management cease trade order against the Chief Executive Officer of the Company. The issuance of such management cease trade order does not affect the ability of persons to trade in their securities of the Company, other than the Chief Executive Officer. However, the BCSC, in its discretion, may determine at a later time that it would be appropriate to issue a general issuer cease trade order affecting all of the Company's securities, if the Company fails to satisfy the provisions of the Alternative Information Guidelines required pursuant to NP 12-203 (the "Alternative Information Guidelines").

The Company is working with its auditors to complete the audit of the Statements as soon as possible. Until the Statements are filed, the Company intends to satisfy the Alternative Information Guidelines by issuing bi-weekly Default Status Reports, each of which will be issued in the form of a press release. If the Statements are not filed beforehand, the Company intends to issue its next Default Status Report on June 29, 2009.

The Company reports that since its original announcement on June 1, 2009 (the "Notice"), in respect of the delay in filing the Statements, there has not been any material changes to the information provided in the Notice other than as described herein nor any failure by the Company in fulfilling its stated intentions with respect to satisfying the Alternative Information Guidelines. In addition, there has not been any other specified default by the Company under NP 12-203, nor are any anticipated and there is no other material information concerning the affairs of the Company that has not been generally disclosed.

About Cantronic

Cantronic manufactures, distributes, and provides training and services in the fields of infrared vision and video security surveillance technologies, specializing in passive and active infrared cameras, infrared illuminators, low light infrared sensitive CCD cameras and long-range night vision surveillance systems for demanding homeland security and surveillance application.

Cantronic holds a valid medical device manufacturing license and is a manufacturer and distributor of its fever scan thermal imaging camera systems which has been widely deployed in public facilities such as airports, railway stations, and border crossings worldwide during the SARS (Avian/Bird Flu) outbreak in 2003.

Cantronic, through its US subsidiary QWIP Technologies, Inc. ("QWIPTECH"), holds a worldwide, exclusive license from the California Institute of Technology ("Caltech") to produce and sell infrared detectors and sensors based on Caltech's Quantum Well Infrared Photodetector technology.

Cantronic is a Tier 1 issuer on the TSX-V exchange, trading under the symbol CTS. For further information about Cantronic and QWIPTECH, please visit our websites at www.cantronics.com and www.qwip.com.

Contact Information

  • Cantronic Systems Inc. - Investor Relations Contact
    Ali Mahdavi
    (416) 962-3300 ext. 225
    am@spinnakercmi.com
    or
    Cantronic Systems Inc. - Company Contact
    James Zahn
    President & CEO
    (604) 516-6667 ext. 228
    jzahn@cantronics.com