VANCOUVER, British Columbia,
March 15, 2012 /PRNewswire/
-- Northstar Electronics, Inc. (OTCQB: NEIK),
specializing in sonar subcontracting for the defense and security
sector, is announcing a letter of intent to purchase Echotec Sonar
Corporation, a cutting-edge innovator of High Definition Omni
Sonar© (HDOS) technology, specifically targeted for the
defense, scientific, commercial shipping and commercial fisheries
markets. Northstar has offered 10,000,000 shares of restricted
common stock, to be released equally over a three-year period, and
6,000,000 three-year common shares warrants at an exercise price of
$0.10. The deal is agreed to in
principal by both parties and is expected to close by mid-April,
2012.
Born out of more than 75 years combined experience in the
defense and security sonar industry; Echotec Sonar Corporation
(http://www.echotec.ca), a privately held company, was created to
satisfy the need for innovative, high-performance, low-cost sonar
products that fit multiple applications and markets.
Coming together to develop Echotec's cutting edge technology,
are two highly respected sonar engineers, Phillip Johnson and Dan
Ward. Phillip Johnson
was with Lockheed Martin for nearly 20 years and helped manage,
design, and develop many of the systems used within defense
systems, high frequency sonar systems, underwater acoustics, analog
electronics, and he built many system level mechanical
designs. Phillip has worked within the military complex for
over 40 years and retains a NATO and Canadian security
clearance. Dan Ward was a
senior underwater systems engineer at Lockheed Martin Canada where
he developed the world's most advanced underwater intruder
detection, mine hunting, and obstacle avoidance sonars. He is
recognized in the defense and research communities for state of-the
art advancements in multiple high frequency sonar systems.
Echotec Sonar designs, develops, and will manufacture and sell
value‑priced High-Definition Omni Sonar© systems capable of
rendering objects in both 2-D and 3-D with extreme resolution.
Based on sonar concepts derived from object identification and
threat detection, harbor security and obstacle avoidance research,
Echotec Sonar plans to develop a family of products around the HDOS
which will add a level of technological innovation that surpasses
contemporary sonar systems. With one of the best price‑performance
measures, the HDOS© is designed to meet the specific demands of the
defense and scientific communities, utilizes state of the art
technology, is affordable, and light weight with a small
footprint. These compelling features meet the needs of many
required applications.
"After fielding more than 25 sonar designs for the defense and
scientific markets, it was clear all of these solutions could now
be implemented using off the shelf processors and video cards in
conjunction with a fully digital transducer," said Phillip Johnson
CEO of Echotec Sonar Corporation™. "With the pace of
development of high-definition rendering cards/ processors found in
most desktops and mobile technologies, Dan
Ward [CTO of Echotec Sonar Corporation] and I knew we could
build a series of high-performance, high-value sonars to meet the
needs of a variety of markets".
The transducer (underwater component) is an extremely sensitive
unit, which provides accurate calibrated data to the processor and
video system (inboard component). Combining innovation in
both the underwater and inboard components, high-resolution images
are rendered with instantaneous 3D capabilities, wireless mobile
device integration, and control. The image definition is so high
that it is possible to provide a fish count and perform species
identification for the fisheries market. For the security and
scientific community, it can provide threat identification and
analysis for objects of interest, such as an intruder diver
swimming nearby. The software and control systems are easily
modified to suit the specific needs of each of the; defense,
scientific, commercial shipping, and fisheries markets.
The products will be designed for retrofit to existing equipment
on all types of vessels from commercial fishing vessels to luxury
cruise ships (e.g. Costa Concordia), lowering the cost of ownership
and reducing time to install.
"We had the pleasure of working with Phil Johnson and Dan
Ward while producing defense and security sonar systems when
they were with Lockheed Martin," said Dr. Wilson Russell, president of Northstar
Electronics. "When they started their own company to produce an
innovative sonar product with multiple applications, it was an easy
decision to bring them in as a strategic acquisition. The
expectation is that this acquisition will bring another dimension
and a strong source of revenue for Northstar Electronics Inc.,
moving it forward and expanding its market reach. We're also
hard at work to find other suitable acquisition candidates that
will improve our bottom line and increase shareholder value."
The LOI with Echotec Sonar was made possible following a
definitive agreement to divest Northstar Network Ltd
(NNL).
Empower Technologies Corporation (TSX: EPT) agreed to pay
$1,000,000 (one million) CAN to the
company over the next twelve months along with three million share
purchase warrants and will become the 100% owner and parent
company of NNL.
Following the closing of this transaction, Northstar will begin
to examine further opportunities to expand into other areas of
business through acquisition or merger. Echotec is the first
acquisition which builds out the sonar line-of-business.
"We were able to negotiate a sale price for NNL that brings
value to the shareholders of the company and also allows NNL the
chance to complete many contracts in-flight," continues Dr.
Russell. "I believe our overall shareholder value will increase
substantially in the coming months through our investments in other
business areas of our company. We have reduced company debt,
brought on a great acquisition, and have sufficient cash to sustain
our momentum. We will also announce some rebranding and will
update our corporate marketing, and web presence."
About Northstar:
Northstar Electronics, Inc., is a holding company with executive
management specialized in design engineering, defense, advanced
systems, security, sonar, systems integration, and prototyping
fields. Northstar is actively pursuing opportunities through
acquisition, joint venture, or merger to increase revenues and
expand its base of subsidiaries.
For further information contact Rich
Kaiser, Investor Relations, YES INTERNATIONAL,
yes@yesinternational.com, #800-631-8127 and/or Beverly Jedynak, Media Relations, Martin E. Janis & Co, Inc., bev@janispr.com,
312-943-1123
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SOURCE Northstar Electronics, Inc.