MonArc Corporation (MONA.PK) Signs Letter of Intent to Acquire Syscon Products Ltd.
TORONTO, Feb 21, 2008 /PRNewswire-FirstCall via COMTEX/ -- MonArc Corporation (MonArc) announced today that it has signed a Letter of Intent to acquire Syscon Products, Ltd. (Syscon).
Steen Elgaard, CEO of MonArc, commented, "This is a very positive development, although it shouldn't come as a surprise to people familiar with our operations. Canden Financial Group, which was just recently acquired by MonArc, has a long standing relationship with Syscon. Simply put, Syscon distributes products related to the Hospitality industry that are at the cutting edge of Point of Sale inventory control systems."
Bar operations are a key profit center for licensed establishments. As reported by Food and Drink weekly in April 2007, on premise alcoholic beverage consumption is roughly a $16 billion dollar industry in the U.S. Syscon represents a comprehensive line of products that immediately begin contributing to the bottom line of its client base.
Elgaard added, "A lot of profit 'disappears' when bartenders 'over pour', spill or quietly pour a glass for a friend 'on the house'. Syscon products provide tight inventory control that addresses all of these issues. The results - clients report an average of a 20% increase in revenue from their beverage services once these products are installed. Increased profits of this magnitude are unheard of, and the ears of some very large and influential players in the Travel and Hospitality industry are starting to take notice."
The acquisition of Syscon will be funded with 3 million shares of restricted stock and options for another 3 million shares at a strike price of 0.10 cents a share based on certain pre-determined performance parameters. Additional details on the acquisition will be forthcoming on our corporate website in a fireside chat forum currently under construction.
About MonArc Corporation
Founded in 2007, MonArc Corporation is fast becoming one of the hospitality industry's leading providers of asset based systems and financing corporations in North America. The company also operates a B2B division being a mergers and acquisitions division, which operates under the trade name (IFGX).
About Syscon Products Ltd.
Syscon represents the manufacturers of some of the leading edge products for alcoholic beverage inventory control and monitoring systems for the hospitality industry. To find out more about Syscon, visit: www.sysconproducts.com.
Safe Harbor Statement
Information in this press release may contain 'forward-looking statements.' Statements describing objectives or goals or the Company's future plans are also forward-looking statements and are subject to risks and uncertainties, including the financial performance of the Company and market valuations of its stock, which could cause actual results to differ materially from those anticipated. Forward-looking statements in this news release are made pursuant to the 'Safe Harbor' provisions of the United States Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, risks relating to the ability to close transactions being contemplated, risks related to sales, continued acceptance of MonArc Corporation's products, increased levels of competition, technological changes, dependence on intellectual property rights and other risks detailed from time to time in MonArc Corporation's periodic reports filed with the regulatory authorities.
SOURCE MonArc Corporation (MONA)
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