Firan Technology Group Corporation
TSX : FTG

Firan Technology Group Corporation

July 08, 2016 09:43 ET

Firan Technology Group Corporation Announces Closing of Acquisition and Issuance of Common Shares to Subscription Warrantholders

TORONTO, ONTARIO--(Marketwired - July 8, 2016) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Firan Technology Group Corporation (TSX:FTG) ("FTG" or the "Corporation") is pleased to announce that in connection with FTG's previously completed private placement of 3,450,000 special warrants for gross proceeds of $6.9 million (the "Offering"), it has advised the underwriters that all the conditions precedent to the closing of the acquisition of Teledyne Technologies Incorporated's printed circuit technology business by FTG Circuits Inc., previously announced by the Corporation on May 5, 2016 (the "Acquisition") have been satisfied or waived, and accordingly the net proceeds of approximately $6.7 million were released from escrow to the Corporation and will be used to pay a portion of the purchase price for the Acquisition, which closed today. An aggregate of 3,450,000 additional common shares of the Corporation (the "Common Shares") were issued to holders of subscription warrants (which warrants were previously issued on the deemed exercise of the special warrants).

The 3,450,000 Common Shares issued to former subscription warrant holders will commence trading on the Toronto Stock Exchange effective today.

The syndicate of underwriters for the Offering was led by Acumen Capital Finance Partners Limited ("Acumen") and included Paradigm Capital Inc. and Clarus Securities Inc.

"We are excited about this acquisition as it enables FTG to continue its strategy of consolidating smaller manufacturers into a larger, more capable company that can compete on a world scale", commented Brad Bourne, President and Chief Executive Officer of FTG. He added, "As we transition Teledyne PCT's unique capabilities and strong customer relationships to our existing FTG facilities, it will enable us to drive up our plant utilization and our profitability."

The securities offered pursuant to the Offering have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, (the " 1933 Act ") and may not be offered, sold or delivered, directly or indirectly, in the United States, or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the 1933 Act), except pursuant to an exemption from the registration requirements of the 1933 Act. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States or to, or for the account or benefit of, U.S. persons.

ABOUT FIRAN TECHNOLOGY GROUP CORPORATION

FTG is an aerospace and defense electronics product and subsystem supplier to customers around the globe. FTG has two operating units:

FTG Circuits is a manufacturer of high technology, high reliability printed circuit boards. Our customers are leaders in the aviation, defense, and high technology industries. FTG Circuits has operations in Toronto, Ontario, Chatsworth, California and a joint venture in Tianjin, China.
FTG Aerospace manufactures illuminated cockpit panels, keyboards and sub-assemblies for original equipment manufacturers of aerospace and defense equipment. FTG Aerospace has operations in Toronto, Ontario, Chatsworth, California, Fort Worth, Texas and Tianjin, China.

The Corporation's shares are traded on the Toronto Stock Exchange under the symbol FTG.

FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, the completion of the Acquisition, the use of the net proceeds from the offering and the timing of trading of the Common Shares. Forward-looking information typically contains words such as "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. Such statements are based on the current expectations of management of the Corporation and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Corporation's industry, generally. The preceding list is not exhaustive of all possible factors. Please refer to the Corporation's Annual Information Form on www.SEDAR.com for a list of additional factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Corporation and not place undue reliance on forward-looking statements. Other than as required by law, the Corporation disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

Additional information can be found at the Corporation's website www.ftgcorp.com.

Contact Information

  • Firan Technology Group Corporation
    Bradley C. Bourne
    President and CEO
    (416) 299-4000, ext. 314
    bradbourne@ftgcorp.com

    Firan Technology Group Corporation
    Joseph R. Ricci
    Vice President and CFO
    (416) 299-4000, ext. 309
    joericci@ftgcorp.com