Mitec buys intellectual property, appoints directorMitec buys intellectual property, appoints director 2013-10-07 18:55 ET - News Release Mr. Jeffrey Mandel reports MITEC TECHNOLOGIES INC. ACQUIRES IP Mitec Technologies Inc. has acquired intellectual property (IP) that has the potential to significantly address security and privacy risks associated with the use of payment cards. The IP was acquired by Mitec from Abe Schwartz, who has agreed to join Mitec's board of directors and be involved with commercialization efforts. Mr. Schwartz has held executive positions in various public and private companies, and has an established record of commercializing information technologies. Subject to regulatory approval, Mr. Schwartz will replace Edward Leavens on Mitec's board of directors. Jeffrey Mandel, Mitec's chief executive officer, stated: "Mitec's current strategy has been to attempt to identify opportunities which could provide it with compelling IP in growth markets. Unfortunately, Mitec does not currently have a balance sheet that allows it to acquire such significant IP without either completely diluting shareholders or having to raise substantial capital. Furthermore, as we explored numerous opportunities, we had to face the reality that Mitec has contingent liabilities that does not make it an attractive vehicle to partner with. The IP we are acquiring in this transaction has tremendous potential to positively impact the way companies manage sensitive payment card data. The added advantage to this transaction is that Abe is familiar with Mitec's past business and is comfortable in helping to restart Mitec." Mitec acquired the IP from Mr. Schwartz by way of a purchase agreement that was executed today in exchange for a combination of five million Mitec common shares and a secured promissory note for $1-million. Mr. Schwartz will become the largest shareholder of Mitec, with total holdings of approximately 43 per cent of Mitec's common shares.