VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 24, 2017) - Quadron Capital Corp. (the "Company" or
"Quadron") - (CSE:QCC) - is pleased to announce that it has entered into a letter of intent (the "LOI") to
acquire all of the issued and outstanding securities of Cybernetics Control Systems Inc. ("Cybernetics"), an arm's length party,
(the "Acquisition").
Highlights
- Cybernetics has developed electronic/automated products and systems relating to LED lighting systems and nutrient
mixing/sensing systems specific to the cannabis industry
- Automation designed to increase efficiencies and improve ROI for licensed marijuana growers with proven track record
Specific to the cannabis industry, Cybernetics has developed electronic/automated products and systems relating to LED
lighting systems and nutrient mixing/sensing systems which are designed to increase efficiencies and reduce costs associated with
these two main components of the cannabis growing lifecycle.
Cybernetics designs, manufactures and supplies custom and standard machines and automated control packages to the process
manufacturing and industrial sectors, with a focus on cannabis, oils, hydroponics, automated growing and
bioenergy. Cybernetics works closely with customers' machinery and factory process concerns and develops solutions to
automate them.
After the design phase, Cybernetics provides custom control (electrical, pneumatic and hydraulic) panels and various touch
screen operator consoles/controls. Automation equipment is typically wi-fi and smart phone enabled - allowing for remote
alerts and even remote reset/control of systems. Cybernetics was instrumental in the design and development of Quadron's
newest extraction processing equipment.
In addition to providing Quadron with R&D and design services on an ongoing basis, Cybernetics currently provides its
automation and design services to over 30 customers across a broad range of industries, including Teck, SkyTrain, Pretivm Gold
and the Department of Fisheries, amongst others. More information regarding Cybernetics is available at www.cyberneticcontrols.com.
Rosy Mondin, President of Quadron, stated "With the acquisition of Cybernetics, Quadron immediately increases revenue and will
be able to greatly reduce its R&D costs as we continue to design, manufacture, and supply innovative, safe, compliant and
efficient cannabis extraction systems and products. Furthermore, Cybernetics meets Quadron's criteria of acquiring revenue
generating businesses that also have an opportunity to grow their operations organically."
Pursuant to the Acquisition, on closing, the shareholders of Cybernetics shall receive an aggregate of 2,700,000 common shares
of Quadron at a deemed price of $0.25, in exchange for all outstanding Cybernetics shares. Up to an additional 6,150,000
common shares of Quadron may be issued to Cybernetics shareholders, upon Cybernetics meeting certain revenue milestones, of up to
$2,500,000, for the fiscal year ending April 30, 2018. The purchase price also includes an offset of $350,000 owing to
Quadron.
Closing of the Acquisition remains subject to a number of conditions, including the completion of satisfactory due diligence,
the entering into definitive agreements, receipt of all required shareholder, regulatory and third party consents, including CSE
approval, and satisfaction of other customary closing conditions. The Acquisition cannot close until the required approvals
are obtained. There can be no assurance that the Acquisition will be completed as proposed or at all.
About Quadron: Quadron operates through its two subsidiaries: Soma Labs Scientific Inc. ("Soma") and
Greenmantle Products Limited ("Greenmantle"), providing ancillary equipment, products and services, designed and structured to
address the complex needs and requirements of cannabis industry participants in Canada and the US. Soma provides research,
services and production equipment to the biotech and bioceutical industries, including cannabis extraction and processing
equipment that is being leased and/or sold to various industry participants. Greenmantle's business involves the sale of
ancillary cannabis products, such as customized dispensing devices (i.e. vaporizer pens) and consumption type products such as
branded encapsulation products to authorized cannabis industry participants.
For more information, visit: www.quadroncapital.ca
On behalf of the Board of Directors of
QUADRON CAPITAL CORPORATION
Rosy Mondin, Director
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts
responsibility for the adequacy or accuracy of this release.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which
are not historical in nature are intended to be, and are hereby identified as "forward-looking statements". Forward-looking
statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar
expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the
Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual
results to differ materially from those indicated in the forward-looking statements.