Material Technologies, Inc. (fka MTNA)

[smartbiz85]

Material Technologies, Inc. Enters Into Agreement with London Investment Company for Sale of 8,666,666 Shares

LOS ANGELES--(BUSINESS WIRE)--Oct. 7, 2004--Material Technologies, Inc. (MATECH) (OTCBB:MTNA) announced today that it has completed an agreement with an Investment Company in London for the purchase by the Investment Company of 8,666,666 MTNA common shares in exchange for shares of the Investment Company.


The Investment Company is newly formed, based in London, and has applied for its shares to be admitted to trading on the London stock exchange as an investment trust. The Investment Company has been established specifically to invest in US micro cap companies with long term growth potential. The Investment Company expects its shares to be trading on the London Stock Exchange by October 7, 2004.

"Should we be able to sell or borrow on the Investment Company shares from time to time, this would provide added liquidity and expansion capital for the Company. The amount of proceeds from the sale of the shares of the Investment Company is uncertain and contingent on market conditions," said Robert M. Bernstein, CEO of MATECH.

The Investment Company has entered into a "lock-up" agreement with MATECH pursuant to which it has agreed not to trade the MATECH shares for a period of two years from the closing date. In full payment for the shares of MATECH, the Investment Company will issue 7,158,590 of its shares to MATECH at a price per share valued at One Pound Sterling.

Fifty percent of the Investment Company's shares will be held in escrow for two years following their issuance, and in the event the per share market price of the MTNA common stock at such time is less than the per share value of the MTNA at the time of the closing, the Investment Company shall be entitled to receive out of escrow a percentage of the shares equal to the percentage of such decline. The remaining shares held in escrow shall be released to MTNA at such time.

MATECH is engaged in the research and development of metal fatigue detection, measurement, and monitoring technologies. As such, the Company has developed a suite of devices for the non-destructive testing (NDT) of metal fatigue and monitoring of structural integrity. These technologies can be applied in virtually any industry in which metal is a significant structural component; i.e.: Bridges, Aerospace, Turbine Engines, Oil & Gas, Construction, Shipping, etc.

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