For immediate release: May 16, 2017
Zecotek Provides Update to Exclusive Distribution Agreement with EBO Optoelectronics and Establishes Subsidiary in China
Singapore, May 16, 2017 - 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 provide an update to the exclusive LFS scintillation crystal supply agreement previously announced on January 25, 2017. Zecotek and Shanghai EBO Optoelectronics have been working diligently to establish rigorous control systems for product delivery and have laid out an aggressive marketing and sales plan to target the key OEMs in China.
“We are working closely with the EBO Optoelectronics management team as we set the ground work to fulfill over $21 million worth of LFS crystals over the next three years,” said Dr. A.F. Zerrouk, Chairman, President, and CEO of Zecotek Photonics Inc. “We have implemented a state-of-the-art quality control system to ensure standardization of our crystal products. The system also allows batch testing of crystals which ensures stable and reliable supply of our high performance LFS products. At the same time, we are working with EBO to develop a marketing and sales plans to grow the value of the agreement. EBO Optoelectronics has an extensive client list that includes all of the top PET OEMs in China. Over the coming months, we will target companies that were not included in the initial contract as we look to leverage our relationship with EBO and expand our footprint within the Chinese market place.”
Zecotek is also pleased to announce the forming of a new subsidiary: Zecotek China. This wholly owned subsidiary was established in the Shanghai Free Trade Zone and will operate under Zecotek Imaging Systems. Zecotek China will be able to conduct business with greater efficiency and ease within the region. There are certain tax incentives and infrastructure within the local business environment that are not available to Zecotek Imaging Systems. Zecotek China will be able to work more closely with EBO Optoelectronics and its customers both in and out of China. It will also allow Zecotek to take advantage of favorable trade conditions thereby reducing the cost of production and improving margins.
“The current business climate in China demands that we have a direct and local presence in the country,” continued Dr. A.F. Zerrouk. ”By breaking down barriers to doing business, we are bringing Zecotek closer to our customers in China. We will be able to offer services and terms that were difficult if not impossible to offer as a foreign company.”
EBO Optoelectronics is the largest crystal array producer and supplier in China and uses Zecotek’s LFS scintillation crystals exclusively for their PET arrays. It has an extensive and impressive international customer list including the top PET OEMs in the world, and serves the second largest medical device market in the world. The significant growth in China’s medical device market is due to an increase in discretionary income and having the world’s largest aging population. The annual growth of the medical device market has reached up to 20 percent for the past six years and is expected to continue at this pace for the next five years. Zecotek has created a strategic partnership with EBO Optoelectronics with the goal of becoming the leading supplier of scintillation crystals and other the key components in China and around the world.
About Shanghai EBO Optoelectronics Co. Ltd.
Founded in 2007 and headquartered in Shanghai, EBO has more than 120 employees and 4,000 square meters of manufacturing space. Shanghai EBO fabricates and supplies crystal arrays to an extensive customer base which includes: Neusoft Medical Systems, Samsung Medical, Topgrade Healthcare, FMI Medical Systems, IHEP of CAS, Huazhong University of Science and Technology, and many domestic and foreign universities and research institutions. EBO has the highest standard processing production line and offers shaped crystal customization and crystal array assembly to end users.
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 with Hamamatsu Photonics (Japan), 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.
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