October 20, 2016
Zecotek Signs Cooperation Agreement for $5 million Equity Stake in Zecotek Imaging Systems
Singapore, October 20, 2016 - Zecotek Photonics Inc. (TSX-V: ZMS; Frankfurt: W1I, OTCPK: ZMSPF), a developer of leading-edge photonics technologies for healthcare, industrial and scientific markets, is pleased to announce that it has signed a cooperation agreement with the Shanghai Creation Investment Management Company (SCI) to initiate a US$5 million financing into its wholly owned subsidiary, Zecotek Imaging Systems Pte Ltd. The agreement calls for a maximum equity position of 10% of Zecotek Imaging stake, with the final valuation contingent upon the execution of the previously announced MOU, with a Chinese PET manufacturer. The investment in Zecotek Imaging Systems will be used to build out the necessary organizational and operational infrastructure, and add China based management to deliver its patented imaging technologies to the Chinese medical PET industry.
“The Shanghai Creation Investment Management Company is a highly respected medical technology fund that invests directly in or raises equity financing for medical technology companies operating in China,” said Dr. A.F. Zerrouk, Chairman, President, and CEO of Zecotek Photonics Inc. “It has worked with over 30 international companies, including the major Chinese medical imaging company which recently ordered Zecotek’s patented LFS crystals for their third high resolution PET medical scanner. The cooperation agreement is a great opportunity for us to gain a leading role in delivering our patented imaging technologies to the world’s fastest growing medical imaging market. We look forward to working closely with SCI to expand our reputation and influence through their large network of partners and government support.”
SCI is one of the most active investment funds and IPO consulting companies in China and will undertake to:
- Register and provide the articles of incorporation for Zecotek Imaging China;
- Recruit local management to execute Company programs and sales;
- Initiate a phased financing starting at US$5 million in Zecotek Imaging Systems, to be increased based on future valuations over the next two years;
- Assist Zecotek Imaging Systems in promoting its imaging technologies in China through SCI’s large network of partners and government organizations;
- Lead fund raising and equity investment initiatives, and optimize exit strategies through merger/acquisition or initial public offerings.
Further to the equity financing, SCI will work with Zecotek to secure a grant from the local Chinese government authority for up to US$3 million for Zecotek Imaging China. The grant monies will be used to set up a local manufacturing facility for Zecotek Imaging China to grow LFS scintillation crystals boules. This will form a second source of crystal supply for Zecotek ensuring stability in supply, quality, performance and cost.
About the Shanghai Creation Investment Management Co, Ltd.
The Shanghai Creation Investment Management Co, Ltd. (SCI) is one of the most active investment funds and IPO consulting companies in China. SCI provides well recognized consulting services for enterprises at different stages and under difference scenarios. Since its inception in 2006, SCI has successfully invested in medical domains and other sectors. SCI has expertise in many growth industries including medical and healthcare, advanced equipment, automobile, consumer goods and new material. SCI has successfully assisted more than 30 China and USA enterprises in private financing, M&A, or public listing with more than US$500 million of private equity financing. For more information visit http://www.scivc.com.
About Zecotek
Zecotek Photonics Inc (TSX-V: ZMS; Frankfurt: W1I) is a photonics technology company developing high-performance scintillation crystals, photo detectors, positron emission tomography scanning technologies, 3D auto-stereoscopic displays, 3D metal printing, and lasers for applications in medical, high-tech and industrial sectors. Founded in 2004, Zecotek operates three divisions: Imaging Systems, Optronics Systems and 3D Display Systems with labs located in Canada, Korea, Russia, Singapore and U.S.A. The management team is focused on building shareholder value by commercializing over 50 patented and patent pending novel photonic technologies directly and through strategic alliances, the European Organization for Nuclear Research (Switzerland), Beijing Opto-Electronics Technology Co. Ltd. (China), NuCare Medical Systems (South Korea), the University of Washington (United States), and National NanoFab Center (South Korea). For more information visit www.zecotek.com and follow @zecotek on Twitter.
This press release may contain forward-looking statements that are based on management’s expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what may have been stated.
For Additional Information Please Contact:
Zecotek Photonics Inc.
Michael Minder
T: (604) 783-8291
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