Vancouver, British Columbia (FSCwire) - Orca Touchscreen Technologies Ltd. (the “Company” or “Orca Touchscreen”) (CSE:OAA) is pleased to announce that construction of the Sollen-Mobile smartphone factory in Guatemala is nearing completion, with occupancy expected to take place sometime in July 2015 and assembly operations expected to commence sometime in Summer 2015. 

Sollen-Mobile, S.A. (“Sollen-Mobile”) is the Guatemalan joint venture company which is constructing the smartphone and tablet assembly factory in Guatemala.  Orca Touchscreen entered into a letter of intent to acquire a one-third equity interest in Sollen-Mobile for US $100,000, as previously announced in October 2014.  Currently, Orca Touchscreen is working with the other joint venture partners towards completing a definitive joint venture agreement regarding Sollen-Mobile.

As a result of the progress in Guatemala, Orca Touchscreen has received inquiries from several countries in Southeast Asia and is currently negotiating with prospective partners in Cambodia, Indonesia and Thailand to establish factories in those countries for (a) assembling new smartphones and tablets, (b) providing after-sales service, and (c) refurbishing used smartphones and tablets.

Orca Touchscreen will work with its future partners to produce smartphones, tablets and other touchscreen devices using Semi Knock Down (“SKD”) methods.  An SKD is a partially assembled kit of components which requires final assembly to create the finished product.  During the Company’s proposed SKD projects, components will be imported into the partner countries for assembly into devices for sale and distribution.  Orca Touchscreen plans to sell and distribute the assembled devices primarily in the partner countries, and secondarily in other countries.  The advantages of SKD projects over conventional production include savings on import duties, savings on taxes, and the goodwill of the partner countries.  Orca Touchscreen’s SKD projects will help partner countries to substitute locally-assembled products for the completely-finished products they currently import, and to provide jobs and develop highly-skilled workforces.

Orca Touchscreen will provide touchscreen system engineers onsite at partner factories to pass on their know-how regarding all facets of SKD assembly production.  For the use of its know-how and technology, the Company will earn royalties on the sale of the touchscreen devices and services. 

Beginning in Guatemala, Orca Touchscreen has targeted SKD partners in developing countries where:  (a) 3G telecommunication services have only recently become available; (b) where the average distribution rate of smartphone users is low, generally below 20% of the population; and (c) where distribution rates are expected to rise to over 80% during the next 3 years.

Thus far, negotiations with prospective partners in Cambodia have made the most progress.  In Cambodia, 3G telecommunication services have only been available since late 2013, and its current communications infrastructure is expected to see the distribution of smartphones starting in earnest this year.  Moreover, the average age of Cambodians is mid-30’s, making Cambodia an attractive location for ‘smart’ business.  Orca Touchscreen is planning to visit Cambodia in late June to conduct market surveys, present the SKD project model to prospective business partners, and to enter into a letter of intent to implement an SKD project there.   Visits to Indonesia and Thailand are expected to follow soon thereafter.

By a License Agreement dated May 12, 2014 between the Corporation and Sollensys Corp. of Korea, the Corporation acquired an exclusive worldwide license for a term of six years to use and sublicense all the touchscreen technology owned by Sollensys and the 18 patents owned by Sollensys.  In December 2012, the Korean Institute for Advancement of Technology (“KIAT”) filed a lawsuit against Sollensys to recover subsidies provided in 2011.  In May 2015, KIAT settled the lawsuit against Sollensys.  Sollensys no longer operates its manufacturing facility, but Sollensys still owns its intellectual property. Orca Touchscreen’s ability to generate revenues from the License Agreement is limited to Orca Touchscreen’s exploitation of Sollensys’ intellectual property by such means as sublicensing. 

About Orca Touchscreen

Orca Touchscreen’s business is the design, production, sale, distribution, service and refurbishment of touchscreen devices, including smartphones and tablets.  The Company is working with partners in developing countries to establish semi known down (SKD) assembly factories to produce smartphones, tablets and other touchscreen devices for sale in that country’s growing market. 

Orca Touchscreen has an exclusive worldwide license to use and sublicense all the technology and patents owned by Sollensys Corp., incorporated and headquartered in Korea, for the purposes of making, selling and distributing touchscreen products and services. 

The common shares of Orca Touchscreen are listed for trading on 3 markets:  the Canadian Securities Exchange under the trading symbol “OAA”, the Frankfurt Stock Exchange under the trading symbol “6OT”, and on the OTCQB marketplace (part of OTC Markets Group) under the trading symbol “ORTFF”.

To learn more about Orca Touchscreen, visit www.orcatouchscreen.com, and you can view its profile and documents at www.sedar.com and www.thecse.com.

For further information, please contact:

Jong Myung (James) Choi

Chief Financial Officer and a Director

Orca Touchscreen Technologies Ltd.

Telephone:  604.880.0499

Email:  cfo@orcatouchtech.com 

For investor relations, please contact:

Christina Payne, President or Nick Boutsalis, Vice President

Primoris Group Inc.

Telephone:  416.489.0092

Email:  ir@orcatouchtech.com

None of the CSE, the Frankfurt Stock Exchange and OTC Markets have reviewed, approved or disapproved the contents of this press release.

Not an Offer in the United States

This news release is not an offer of the securities for sale in the United States.  The securities being offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration.

Forward-Looking Information:

This press release may include ‘forward-looking information’ within the meaning of Canadian securities legislation, concerning the business of the Company.  Forward-looking information is based on certain key expectations and assumptions made by the management of the Company.  Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. The Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

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