Cell-Loc Location Technologies Inc.
TSX VENTURE : XCT

Cell-Loc Location Technologies Inc.

March 15, 2011 19:56 ET

Cell-Loc Location Technologies Inc. Provides Corporate and Strategic Update

CALGARY, ALBERTA--(Marketwire - March 15, 2011) - Cell-Loc Location Technologies Inc. (TSX VENTURE:XCT) ("Cell-Loc") is pleased to provide an update on its business development activities.

Debt Reduction

Cell-Loc has successfully renegotiated its debt agreements, thereby reducing its balance sheet obligations and its immediate cash requirements. These measures were required to stabilize the Company, optimize its existing assets and implement a new business plan which will focus on the growth of the Company.

Asset Optimization

Cell-Loc currently has inventory and balance sheet assets which are not being utilized and consequently, are providing no immediate value to the Company. As part of the Company's business plan, Cell-Loc has entered into discussions which would allow the Company to extract immediate value for these assets.

Current Product Offering

Cell-Loc has developed a unique and proprietary technology which provides:

  • Accurate and low cost location-based services throughout a large coverage area;
  • Secure and robust operation in the 2.4 GHz ISM (Industry, Science and Medical) frequency band due to proprietary interference and jamming rejection techniques;
  • A ubiquitous network with capability to integrate with other location/data networks;
  • Opportunity to expand the Company's business platform to a broad range of telemetry and narrow bandwidth packet data applications.

X3 Telecomunicacoes (X3)

Cell-Loc provides technical services to X3 to assist in the development of enhanced services for the stolen vehicle recovery market in Brazil. In addition to network and operating enhancements, Cell-Loc is assisting X3 in developing a new beacon device for the Brazilian market. Cell-Loc has also been contracted by X3 to develop telemetry applications to provide remote data transmission within the coverage area of X3's network in São Paulo. The revenue derived from these professional services agreements provides Cell-Loc with ongoing revenue to fund its costs incurred in retaining the technical staff.

Product Development/Product Integration

Cell-Loc is evaluating, and plans to augment to its product offering through the development and integration of best-in-class third-party products that currently exist in the market. This initiative will provide the following benefits to the Company's current product offering.

  • Unique and diverse market applications with integration capability (reducing time and deployment cost)
  • Ability to deploy and maintain ubiquitous networks
  • Ability to integrate with existing networks
  • Low cost service provider (data, location, applications)
  • Integrated outdoor / indoor solution
  • Security and low risk of jamming

Business Development

Cell-Loc is evaluating business opportunities which would be accretive either by providing a new product offering for defined markets or entering into a business transaction which would result in positive cash flow for the Company.

Cell-Loc is currently in discussions with third parties that have complementary technologies which could be integrated with the Company's suite of products.

Cell-Loc is working with X3 to finalize its telemetry application to transmit electrical metering data to a host network. This application is intended to result in a pilot project with a major electrical utility located in Sao Paulo, Brazil, utilizing X3's network. Cell-Loc's proprietary technology allows for extremely low cost data transmission within its network territory. The technology has superior interference handling capabilities which makes it optimal for use in dense urban areas with extreme congestion.

Cell-Loc is currently developing Beacon 7 as requested by its customer, X3. Beacon 7 is being developed to meet the growing demand expressed by X3 for current and prospective customers who are eager to combat vehicle theft. GPS-based and other competitive RF-based location technologies are now being jammed by thieves using inexpensive and readily available jamming devices. Cell-Loc's beacon has always been immune to such jamming due to its proprietary technology and design. Beacon 7 is expected to significantly improve recovery rates by offering built-in intelligence to automatically alert the monitoring company when a theft is occurring so recovery can start immediately – even before the vehicle owner becomes aware of it. Often, the recovery team has less than a few hours in which to locate and secure a stolen vehicle before it is rendered unrecoverable and is disassembled by well-organized thieves.

Corporate Restructuring

Cell-Loc and X3 have commenced discussions concerning the merits of merging the two companies to form a larger base from which to expand the combined technology and operating capabilities. To date discussions have been productive for both parties, but no agreements have been reached. Any prospective transaction would be structured with specified conditions precedent established to provide positive cash flow from operations.

Global Development

Cell-Loc has initiated discussions relating to its technology in several geographical territories. It is the Company's intent to find strong, strategic partners who will help to leverage its technology strengths in new markets with expanded applications.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS:

Certain statements contained in this news release constitute forward-looking statements By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Cell-Loc's control including the impact of general economic conditions, industry conditions, currency fluctuations, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources, the inability to obtain required consents, permits or approvals, including regulatory approvals, counter-party risks and the risk that actual results will vary from the results forecasted and such variations may be material. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Cell-Loc's actual results, performance or achievement could differ materially from those expressed in or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits Cell-Loc will derive therefrom. 

The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, Cell-Loc disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Cell-Loc Location Technologies Inc.
    Keith Bohn
    Interim CEO
    403.569.5700