Eurocontrol Technics Inc.

Eurocontrol Technics Inc.

September 15, 2005 12:09 ET

Eurocontrol Enters Into Letter Of Intent To Acquire An Interest In Global Fluids International

TORONTO, ONTARIO--(CCNMatthews - Sept. 15, 2005) - Eurocontrol Technics Inc. (TSX VENTURE:EUO) announces that it has entered into a letter of intent to acquire a 51% interest in Global Fluids International S.A. Founded in 2001, GFI (Global Fluids International) S.A ("GFI") is one of the world pioneers in developing and implementing the most innovative marking systems for all types of oil products and its derivatives, and supplying unique high-tech detection units for these markers. The new generation of molecular marking systems are accurate, non limitable and provide final forensic evidence in the field.

The business model of GFI is a service model where the customer pays a predetermined amount for every marked liter, and an additional optional payment for the sampling and analysis. GFI's customers are mainly governments who are trying to avoid tax evasions and environment damages as a result of using mixed fuel, and large oil companies hedging their brands and premium products. These customers are now under pressure with the climbing oil prices encouraging smuggling, mixing and adulteration of all oil products.

GFI has an extensive practice in this new growing market, and intends to extend its technology into other large markets, where it can leverage its expertise in authentication applications.

GFI is managed by Dr. Eli Zahavi (Chairman) and Mr. Gadi Gonen (CEO). Dr. Zahavi has more than 30 years extensive experience in the energy and oil markets and applications, and has managed large energy and oil enterprises worldwide successfully. He served as deputy general manager of Delek - one of the largest Israeli oil companies and is a well known figure in energy projects management. Dr. Zahavi served as a consultant to governments and large energy conglomerates.

Mr. Gadi Gonen has 20 years experience with establishing and managing high tech companies, raising private and public equity and support start-up ventures in the process of transforming from R&D phase into solid profiting companies. Mr. Gonen was one of the founders of Redbend Inc. and Fastbeat Limited, 2 successful startup companies leaders in their market, and was also a director with some leading public software companies in Israel.

GFI has offices in Austria, Israel Mexico and US, and its R&D center is based in Israel, and is sharing technologies with Soreq NRC - one of the National Research Centers of the State of Israel, with more than 500 scientists on board. GFI's project is one of the most successful commercial projects of ISORAD, the commercializing arm of Soreq.

In order to acquire a 51% interest in GFI, Eurocontrol will be required to invest a total of US$5 million in GFI over a period of 18 months. As Eurocontrol makes its US$5 million investment in GFI, it will issue to GFI a total of 1,634,849 common shares and a total of 1,500,000 warrants (with the shares and warrants to be issued on a pro rata basis as the investment is made). The 1,500,000 will consist of 750,000 warrants exercisable into common shares at an exercise price of CDN$0.25 until April 24, 2007 and the remaining 750,000 warrants will be exercisable into common shares at a price of CDN$0.50 until April 24, 2007. Eurocontrol's 51% interest in GFI will be earned on a pro rata basis as the investment in GFI by Eurocontrol is made. The agreement remains subject to a 30 day due diligence period, the receipt of the approval of the Board of Directors of both Eurocontrol and GFI as well as all required regulatory approval. In the event that these conditions are met and the companies enter into a definitive agreement, it is the intention of Eurocontrol to appoint Gadi Gonen as the President of Eurocontrol and strengthen the Board of Directors of Eurocontrol through the appointment of two GFI executives. The Company has also granted directors, officers and consultants options to purchase 1,000,000 common shares at $0.25 for a period of five years, subject to regulatory approval.

About Eurocontrol Technics Inc.

Eurocontroal Technics Inc. is a Canadian based company trading on the TSX Venture Exchange under the symbol EUO.

65 Queen Street West, Suite 825
Toronto, Ontario M5H 2M5


Contact Information

  • Eurocontrol Technics Inc.
    Tony Wonnacott
    (416) 861-5879