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Electronics Production | February 27, 2008

Israel based EMS buys stake in Adeptron

Canada based EMS provider Adeptron Technologies has entered a letter of intent with Israel based EMS provider R.H. Global Technologies in respect of a proposed private placement transaction of $6 million worth of common shares of Adeptron at a price of $0.10 per share.
RGT would hold approximately 62% of the issued and outstanding shares of Adeptron, and would be entitled to
nominate four of the increased board of nine directors of Adeptron. The proceeds of the Proposed Transaction would be used to repay the Company's outstanding $5 million subordinated debenture. The Proposed Transaction is
subject to completion of due diligence, execution of definitive transaction agreements and receipt of all regulatory approvals, including shareholder approval and is expected to close by May 9, 2008.

The subordinated debenture was put into place in September 2006 as a part of the refinancing transactions of the Company credit facilities at that time. The early retirement of the subordinated debenture and the ability to eliminate approximately $900,000 in annual interest expense through the issuance of common shares makes this an accretive transaction for all shareholders.
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December 13 2018 1:08 pm V11.10.14-2