03:52 PM EST - Cantronic Systems Inc. : has completed the acquisition of a 58.6-per-cent stake in Beijing Advanced VideoInfo Technology Co., Ltd., a provider of networked multimedia management solutions for remote monitoring and security surveillance. Cantronic will pay a total of RMB 9.2 million or about $1.7 million in cash in two phases for the acquisition of its 58.6-per-cent stake in AVINFO. Cantronic said it has sufficient cash and cash equivalents to support the capital requirements for both phases. All of Beijing Advanced VideoInfo Technology management will remain working for either Beijing Advanced VideoInfo Technology or Cantronic China to ensure the smooth and successful integration of Beijing Advanced VideoInfo Technology. Cantronic also agreed to issue up to RMB 8.4 million or about $1.2 million worth of Cantronic common shares to Beijing Advanced VideoInfo Technology management and management consultants under an earn-out performance-based arrangement. All Cantronic common shares issued under such arrangement will be issued one year after the close of the acquisition, at the price to be calculated based on market price at the time of issuance and will have a two-year lock-up period after issuance. Cantronic Systems Inc.
shares V.CTS are trading up $0.01 at $0.14.
