TSXV: NC
VANCOUVER, June 12 /CNW/ - Nicer Canada Corp. (TSXV: NC) ("Nicer", or the"Company") today announced it has reached an agreement with the principal ofJmars Information Technology Co. Ltd. ("JMIT"), a fully private foreigninvestment high technology enterprise in China, to purchase 66.67% of JMIT'sshares with a purchase price of C$5,500,000, payable in a combination of cashand the Company's shares (the "Acquisition").
JMIT develops, markets and sells RFID and Business Intelligence computersoftware, services and products in China. Currently, JMIT's roster of clientsconsists of more than 20 enterprises including some 500 chain stores as wellas Lingang Group, Bailan Group and Fujitsu (China). A partnership intechnology research with Fudan University of Shanghai has helped to propelJMIT's reputation and developments to the ranks of the top software developersof its kind. A profitable operator, JMIT has forecast at least C$575,000(RMB$4,025,000) in net earnings for the fiscal year ending December 31st 2008,a target on which the Acquisition is based and contingent upon.
"It is very satisfying to come to this agreement with JMIT which hastaken eight months since signing the letter of intent," commented Paul Chen,President and CEO of Nicer. "When completed, we believe this investment andacquisition will likely drive up Nicer Canada's annualized revenuesconsiderably and achieve profitability for the Company."
The acquisition of JMIT is subject to acceptance and approval by the TSXVenture Exchange and majority shareholder approval pursuant to policies of theTSX Venture Exchange. Upon receipt of conditional acceptance of theAcquisition from the Exchange, the Company will proceed with an equity privateplacement to finance the Acquisition.
Closing has been set for 90 days after the conditional acceptance date atwhich point C$1,600,000 will be due and payable.
The remaining C$3,900,000 shall be made payable in a combination of cashand shares of the Company in accordance with a payment schedule set out in theshare purchase agreement.
About Nicer Canada
Since the Company's founding in 1994, Nicer Canada has developedindustry-leading expertise in delivering wired and wireless Internet Protocol(IP) voice and data solutions to customers worldwide. The Company's technicalfoundations were laid by a RFID (Radio Frequency Identification) technologycompany in China. Nicer Canada Corp. expanded into integration informationsystems based on global positioning and patented RFID technologies.Headquartered in Burnaby, British Columbia, Canada, Nicer Canada Corp. becamea publicly-traded company in 2003, listing on the TSX Venture Exchange underthe symbol "NC".
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