CSI Wireless completes acquisition of Outback(R) GPS agriculture guidance business12 April 2005
An overview of the Outback Business transaction can be found in CSI's press release dated April 5, 2005. The closing date of the acquisition was April 8th, 2005.
At closing, CSI issued to RHS consideration of 4.4 million common shares of CSI Wireless and a note payable in connection with the cash portion of the transaction consideration. Net cash to be delivered to RHS on redemption of the note will be approximately US$9.6 million. All other transaction details are as outlined in CSI's April 5th 2005 press release.
CSI expects to redeem the note with the cash proceeds from its "bought- deal", underwritten private placement financing announced March 28th, 2005. Proceeds from the private placement are anticipated to be a minimum of
C$12 million. The financing is expected to close on April 19th, 2005. The Common Shares have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States, or to a U.S. person, absent registration, or an applicable exemption therefrom.
About CSI
With offices in Calgary, Silicon Valley, and Phoenix, CSI designs and manufactures innovative, cost-effective, wireless and GPS products for mobile and fixed applications in the agriculture, marine, automotive and other
markets. CSI is a leader in several high-growth markets including Precision Guidance in Agriculture, Telematics and Desktop Cellular Telephones. The Company owns numerous patents and intellectual property relating to wireless and GPS technologies. It has licensed its cellular technology to GPS, cellular handset, and chipset manufacturers. CSI's common shares trade on The Toronto Stock Exchange under the trading symbol "CSY", with approximately 38 million shares outstanding. For more information about CSI, go to www.csi-wireless.com.
The above disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward- looking statements are subject to numerous risks and uncertainties, certain of which are beyond CSI's control, including: the impact of general economic conditions, industry conditions, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to the announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. CSI's actual results, performance or achievement could differ materially from those
expressed in, or implied by these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward- looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceed, that CSI will derive therefrom.
For further information: Stephen Verhoeff, President & CEO, CSI Wireless Inc., (403) 259-3311, sverhoeff@csi-wireless.com; Corbet Pala, Investor Relations, E-vestor Communications Inc., (416) 657-2400, cpala@e-vestorcom.com; Jeff Adams, Public Relations Manager, CSI Wireless Inc., (403) 259-3311/615-8747 (cell), jadams@csi-wireless.com; Rick Heiniger, CEO, RHS Inc., (816) 595-5542, rheiniger@rhs-inc.com
Source: Canada NewsWire
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