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Bullboard - Stock Discussion Forum Eurocontrol Technics Ord EUCTF

"Eurocontrol Technics Group Inc is a Canada-based company involved in acquisition, development, and commercialization of security, authentication, verification and certification markets. The company through its subsidiaries is engaged in designing, manufacturing, marketing of energy-dispersive X-ray fluorescence (ED-XRF) systems, and developing technology and property that combines two... see more

OTCPK:EUCTF - Post Discussion

Eurocontrol Technics Ord > little order from SICPA
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Post by paultron031 on May 31, 2017 1:25pm

little order from SICPA

Eurocontrol's Xenemetrix Receives SICPA Order
 

Approx. US$250,000 Order in Support of Fuel Marking Project

TORONTO, ONTARIO--(Marketwired - May 31, 2017) - Eurocontrol Technics Group Inc. (TSX VENTURE:EUO)(OTCQB:EUCTF) ("Eurocontrol" or the "Company"), a Canadian public company specializing in the acquisition, development and commercialization of innovative test and measurement technologies for industry with application systems focused on the energy security, semiconductor and precision agriculture sectors, announces that its wholly-owned subsidiary Xenemetrix Ltd. ("Xenemetrix") has received an order for six ED-XRF Petromark™ analyzer units for revenue of approximately US$250,000 from SICPA.

The order of units is in support of a three year contract renewal that was awarded after a tender process. The renewal provides evidence that the Petromark™ marking solution is continuing to address and discourage fuel adulteration providing increased oil revenues. The Petromark™ fuel marking system functions as an "in-product tax stamp" that cannot be removed, altered or copied. The detection technology supplied by Xenemetrix is highly accurate and exploits advanced ED-XRF spectrometry techniques providing the sophisticated tool available to eliminate fraud in the oil sector. Xenemetrix has an exclusive long-term supply, maintenance and support agreement with SICPA to supply ED-XRF spectrometry equipment and services related to the oil and gas marking and monitoring field.

The problem of fuel adulteration and theft is widespread as demonstrated by a recent Infographic created by Visual Capital - https://www.eurocontrol.ca/index.php/about-us/global-black-market-for-oil

Bruce Rowlands, Chairman and CEO stated, "We are pleased to receive this initial order and continue our support of SICPA and we look forward to additional equipment orders and in the case of new contracts, additional earn-out revenue as their efforts since acquiring our former fuel marking subsidiary come to fruition."

About Eurocontrol Technics Group Inc.

Eurocontrol is a TSX Venture and OTCQB traded company that specializes in the acquisition, development and commercialization of innovative test and measurement technologies for industry with application technologies focused on the energy security, semiconductor and precision farming sectors based on Xenemetrix's core technological platform of ED-XRF. Eurocontrol has three wholly owned subsidiaries, Xenemetrix Ltd., XwinSys Technology Development Ltd. and Croptimal Ltd. and an agreement with SICPA S.A. for semi-annual earn-out payments of 5% (minimum $9 million over six years) on revenues generated from the oil and gas marking and monitoring field relating to the sale of its former subsidiary Global Fluids International (GFI) S.A. Xenemetrix is a leading designer, manufacturer and marketer of ED-XRF systems, a technology that is the most accurate and economic method for determining the chemical composition of many types of materials, including the analysis of petroleum oils and fuel. Xenemetrix has an exclusive long-term supply, maintenance and support agreement with SICPA to supply Xenemetrix products and services related to the oil and gas marking and monitoring field. XwinSys has developed a patented, fully automated metrology system for the semiconductor industry that combines 2D and 3D image processing technology with Xenemetrix's ED-XRF technology. Croptimal, is introducing a new mobile ED-XRF spectroscopic material analysis laboratory for the precision agriculture industry that could dramatically change agricultural testing methodology and increase crop yields.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Comment by Chutzpah on May 31, 2017 1:40pm
Sadly the real news is buried in this line and in the case of new contracts, additional earn-out revenue as their efforts since acquiring our former fuel marking subsidiary come to fruition." Kidl already hinted to be in the know of this.... Tanzania new contract was treated as it was the same pre-existing contract towards computing the 5% above 1.5M thing when contract with SICPA doesnt ...more  
Comment by Ringert on May 31, 2017 2:28pm
Is that really a question that still needs to be asked? I think we all know by now that Brucey is not on the side of EUO shareholders. He's on his own side, hence why he has a seperate contract with SICPA outside of his relations to EUO.
Comment by Chutzpah on May 31, 2017 3:54pm
Rethorical question actually...
Comment by kidl2 on May 31, 2017 4:37pm
I did not hint at it. I “opined” and it was subsequently discussed on SI in early February. It’s  IMO (well, seemingly also in the opinion of others as per the SI posts) a pretty clear cut case ... Tanzania was called a renewal but was NOT a renewal for two very simple reasons:   Had the old GFI contract contained a renewal clause, it would not have been put out for tender which it ...more  
Comment by Raptorman2013 on May 31, 2017 5:27pm
kidl2 - did you call Bruce and discuss this issue with him? If not I feel you should... I wonder if he will validate your thoughts?
Comment by kidl2 on May 31, 2017 7:18pm
Ringert: You bet I did. It was actually my last conversation with Bruce and it wasn't him who ended the call. If you want further details, ask Bruce. I am absolutely certain he'll remember the call. LOL
Comment by Raptorman2013 on May 31, 2017 8:43pm
Hi Kidl2 - when exactly did you call Bruce? What day was it? Thanks
Comment by kidl2 on May 31, 2017 8:51pm
This post has been removed in accordance with Community Policy
Comment by Raptorman2013 on May 31, 2017 9:04pm
This post has been removed in accordance with Community Policy
Comment by kidl2 on May 31, 2017 9:50pm
This post has been removed in accordance with Community Policy
Comment by Chutzpah on May 31, 2017 5:33pm
Greay post.  Actually its pretty questionable why the old GFI was never involved in any/at least a portion of the logistics biz in Tanzania or Uganda for the benefit of EUO holders but some outfit called GFI Tanzania run by an Israeli with seemingly ties to Haifa University did ...... https://www.linkedin.com/in/amit-noyman-585082b/ Looking like some might have gotten the cream and some the ...more  
Comment by Ringert on May 31, 2017 8:45pm
Brucey probably cut a deal with SICPA where a large chunk of that profit EUO is missing out on goes straight to his personal bank account... Wouldn't surprise me.
Comment by frs1960 on Jun 01, 2017 6:20am
kidl2 - (5/31/2017 4:37:04 PM) RE:RE:little order from SICPA I did not hint at it. I “opined” and it was subsequently discussed on SI in early February. It’s  IMO (well, seemingly also in the opinion of others as per the SI posts) a pretty clear cut case ... Tanzania was called a renewal but was NOT a renewal for two very simple reasons:   Had the old GFI contract contained ...more  
Comment by kidl2 on Jun 01, 2017 10:40am
frs: There are essentially 2 parts to the royalty agreement.   Part 1 is a minimum $1.5 Mil annual guarantee which SICPA has to pay for 6 years. This is payable even if any or all of the contracts which existed at the time the deal was signed were to be cancelled.   Part 2 deals with NEW contracts. It calls for a 5% royalty for the 6, respectively 9 year contract period. This 5% royalty ...more  
Comment by zario on Jun 01, 2017 11:13am
As I understand it, a new contact would not be in addition to the minimum payment.  To have more than the minimal payment, all new contacts would have to exceed the minimum threshold. Zario
Comment by kidl2 on Jun 01, 2017 12:42pm
zario: I’m no lawyer and neither are the people who have participated in many discussions about this issue here and on SI but the “Net Revenue” definition on page 6 of the contract filed on Sedar Nov 30, 2015 as part of the Information Circular seems pretty clear to me BUT this doesn’t mean that I have the faintest clue what I’m talking about. LOL   Best to go to Sedar since these PDF files ...more  
Comment by zario on Jun 01, 2017 3:07pm
My point is that the minimum is a minimum. You have to compute the Earn-out amount first and then if it's under the minimum, you get the minimum.     From the PURCHASE AGREEMENT, SICPA has 10 days to pay the minimum payment and 60 days to pay the excess of it :   2.2 Earn-Out Amounts and Post Earn-Out Additional Payments (a) Earn-Out Amounts. Buyer and Seller agree ...more  
Comment by kidl2 on Jun 01, 2017 4:11pm
zario: The operative term is “Net Revenue” on which the 5% royalty is based on. Tanzania revenue no longer counts because it’s a renewal which means the base from which any excess would be calculated from has just been reduced by some $12.5 Mil per year.   Have a look at this post. It might help to better understand my line of reasoning. https://www.siliconinvestor.com/readmsg.aspx?msgid ...more  
Comment by Onions19 on Jun 01, 2017 8:00pm
is there any indication why this would be treated as a new contract? not a new customer so not sure why this is being discussed as a potential loss on EUOs part.
Comment by Chutzpah on Jun 02, 2017 1:03am
 new bidding process = new contract award key is contract btw SICPA and EUO diferentiating btw PRE-EXISTING (to the sicpa deal signature) contracts (Albania, Uganda, Tanzania) and. NEW ones. new tender won = NEW contract.  Another thing is that the OLD greasing hands of friends and partners structure in place in Tanzania for the service side of the contract (the one involving the real ...more  
Comment by Chutzpah on Jun 02, 2017 1:03am
@new bidding process = new contract award key is contract btw SICPA and EUO diferentiating btw PRE-EXISTING (to the sicpa deal signature) contracts (Albania, Uganda, Tanzania) and. NEW ones. new tender won = NEW contract.@ Another thing is that the OLD greasing hands of friends and partners structure in place in Tanzania for the service side of the contract (the one involving the real dough ...more  
Comment by koast2 on Jun 02, 2017 9:38am
Thank you !! Someone finally said it . Moot point other than maybe it should have been thought of in initial negotiations of the sale to Sicpa .
Comment by kidl2 on Jun 02, 2017 12:21pm
Just to quickly sum it up ...   One person disagreed with my take but has since gone quiet Two people see it as no big deal / water under the bridge The rest has no (public) opinion   Fascinating! A couple of Mil of virtually net profit for EUO fall by the wayside either because the original contract terms provided a loophole for SICPA or because EUO management didn’t stand up to SICPA ...more  
Comment by Raptorman2013 on Jun 02, 2017 12:44pm
Complete Nonsense! Just like the phone call you made to Bruce...
Comment by Onions19 on Jun 02, 2017 12:58pm
first off, looking at this from a high level there is no way I would allow this to be treated as a new contract if I were SICPA. They have 3 contracts in place, 3 solid relationships that they've built up to get income from.... that's part of the purchase price (customer list.. if 3 can count as a list). Second this is all speculation. How do you know that this wasn't discussed during ...more  
Comment by frs1960 on Jun 01, 2017 12:07pm
Thank You kidl2, so we are, as SH, penalized with the interpretation of this new tanzanian contract interpretation. Nothing to do? Even at the annual general meeting?
Comment by Hawkdog on May 31, 2017 2:00pm
Good to see.  Nice to see more info coming from the company - more focus on investor relations.
Comment by Chutzpah on Jun 01, 2017 11:11am
Very positive, 250K with 40% GM shall cover Brucey's salary for half year.