VANCOUVER, BC--(Marketwired - January 31, 2018) - Zecotek Photonics Inc. ("Zecotek" or the "Company") (TSX VENTURE: ZMS) (W1I.F) (OTC PINK: ZMSPF), a developer of leading-edge photonics technologies for healthcare, industrial and scientific markets, is pleased to announce that it has closed on a previously announced divisional equity financing of $5 million.
The financing was completed by selling a 6.67% equity interest in a newly formed, wholly owned subsidiary Zecotek Imaging China Ltd. for net proceeds of $5 million. Zecotek has secured the divisional investment with an industrial business group based in China, which has also made a significant investment in the recently announced non-brokered private placement. The divisional financing was based solely on the appraised pre-commercialized value of Zecotek's patented LFS scintillation crystal technology of approximately $75 million.
"The funds raised by the equity sale in Zecotek Imaging China will be used to enhance the production capacity and sales of our patented LFS scintillation crystals," said Dr. A.F. Zerrouk, Chairman, President, and CEO of Zecotek Photonics Inc. "The in-house capacity will allow us to gain full control over the cost and price of our LFS crystals, and set a benchmark and standard to ensure price-performance and supply consistency for our customers. We have made considerable progress in the Chinese marketplace with collaboration and supply agreements with EBO Optoelectronics and have commitments from three medical scanner OEMs to use our LFS crystals. Our own China based operation complements our existing China based manufacturing partnerships and will provide supply assurance for our existing partners as well as immediate European and Chinese medical scanner OEM customers and other LFS crystal users worldwide."
Zecotek is also pleased to announce the formation of a new subsidiary: Zecotek Imaging China Ltd. This wholly owned subsidiary has been established in the Shanghai Technology Zone, and will operate under its parent company Zecotek Imaging Systems Ltd. Zecotek Imaging China will establish a presence in China and around the world through the production and commercialization of Zecotek's patented LFS scintillation crystals in its current and future forms. Zecotek Imaging China will work closely with EBO and its customers within China and the broader international medical imaging market.
Zecotek Photonics Inc (TSX VENTURE: ZMS) (W1I.F) 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), Shanghai EBO Optoelectronics Technology Co. (China), Beijing Optoelectronics 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.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the content of this news release. If you would like to receive news from Zecotek in the future please visit the corporate website at www.zecotek.com.