SOURCE: Northstar Electronics, Inc.
VANCOUVER, BC--(Marketwire - Jul 19, 2012) - Northstar Electronics, Inc. (OTCQB: NEIK) (PINKSHEETS: NEIK) provides an update on its corporate activities.
The Company is waiting for Empower Technologies Corporation (EPT) to receive final approval of the transaction from the TSX Venture Exchange in order to proceed with the closing of the disposition of the Company's subsidiary, Northstar Network Ltd. (NNL), to Empower.
Following the closing of the NNL disposition, Northstar plans to focus its attention on three key areas. The first focal area will be to accelerate the development and growth of Echotec Sonar, the Company's recently acquired subsidiary. The second focal area will be to complete the search and selection of an appropriate company as an acquisition or merger candidate. The third focal area will be to increase corporate awareness nationally and internationally through investor communications outreach, meetings with investment bankers, and direct outreach to strategic local and international partners.
As announced recently, Echotec Sonar is making rapid progress in the development of its 3-D High Definition Sonar (HDS), which should offer some of the highest resolution in the sonar industry. We believe that the HDS system under development by Echotec Sonar will be proven to be one of the most advanced products available and that upon its launch, many customers across numerous verticals will find the system cost-effective, operationally effective and easy to use.
Our plans call for Northstar to support Echotec's growth by providing enough funding for both accelerated development of the 3-D HDS technology and the commercialization of multiple systems using it. This will call for an intensive program to raise funds through equity investments and for increased efforts on market assessment and development activities to focus on the first targeted customers. These potential customers fall in two industry sectors: commercial (shipping, oil tankers, cruise ships, ports, commercial fishing) and defense (naval ships, naval ports).
Northstar will step up its efforts to find a suitable acquisition or merger candidate. The main criteria are that the company's business is synergistic with the Northstar vision and that it has strong revenues and profits. In terms of synergy, this means that the company would be in a technology area and/or business area that is compatible with Northstar, where the two joining together would be greater than the sum of the parts.
Dr. Wilson Russell, CEO, Northstar, says, "We see Northstar taking a new road to its future after the disposition of NNL. There is an opportunity here to forge new business relationships and use the experiences we've had, both good and bad, to build a stronger entity. Our objective is to do whatever we possibly can to accelerate our growth in revenues and build profits in sustainable ways. We believe we have a good opportunity to greatly improve shareholder value over the next couple of years."
About Echotec Sonar:
Echotec Sonar Corporation is a wholly owned subsidiary of Northstar Eletronics, Inc. The founders have over eighty combined man-years of expertise developing high frequency sonar products within the defense and commercial industries. Echotec Sonar is a world leader in this field through experience, technical acumen, and team diversity, which understands the needs of many defense and commercial entities. http://www.echotec.ca
Northstar Electronics, Inc., is a holding company with executive management specialized in design engineering, defense, advanced systems, security, sonar, systems integration, and prototyping fields. Northstar is actively pursuing opportunities through acquisition, joint venture, or merger to increase revenues and expand its base of subsidiaries. http://www.northstarelectronics.com
Safe Harbor Statement
This press release contains forward-looking statements. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the company's current plans and expectations, as well as its future results of operations and financial condition. Such risks include, but are not limited to, the effects of competition with existing enterprises and/or new entrants into the company's markets and industries, fluctuations in currency exchange rates, domestic and global economic conditions generally, the company's ability to obtain financing and attract suitable personnel where required to fully implement its business plan, the adoption and acceptance by the marketplace of the company's technologies and product and service offerings, the possibility of new technologies that are competitive with the company's planned product and service offerings and the effects of future political and economic developments both in the United States and abroad, among others. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of information, future events or otherwise.