(MENAFN- ProactiveInvestors) () a junior Canadian company that provides detection and marking systems said its letter of intent with U.S.-based Austin Automation and Instrumentation Inc. has expired as of December 31.
Austin AI will continue to act as distributor for Eurocontrol's subsidiary Xenemetrix in the U.S. and Asia as Austin AI has done since 2012 Toronto Ontario-based Eurocontrol said in a statement late on December 31. Stock markets in the U.S. and Canada were closed yesterday for the new year holiday.
Under the terms of the letter of intent which was non-binding and which was announced on November 3 Eurocontrol will purchase the assets in exchange for 7.5 million common shares and 2.5 million share purchase warrants which will vest based on certain sales and performance criteria relating to several large contract opportunities.
"Although we are not proceeding to finalize this transaction at this time we will continue to work with Austin AI and Rick Comtois to explore and develop opportunities for cooperation in our ED-XRF businesses” Bruce Rowlands chief executive officer of Eurocontrol said in the statement.
“We have several advancing prospects that could serve as a catalyst for a transaction in the future."
Austin AI is a private company located in Austin Texas that was founded by Rick Comtois in 2001. The company was created for the purpose of developing state-of-the-art sensor technology into custom automated measuring and sorting systems.
“Both Xenemetrix and Austin AI have strong franchises in energy dispersive X-ray fluorescence technology” Eurocontrol stated. “The combination of Austin AI's ED-XRF business with Xenemetrix's existing business although not possible at this time would produce broader distribution of both company's products and access to new vertical markets through technological innovation.”
Xenemetrix which was acquired by Eurocontrol in October 2010 is the manufacturer of the analyzers Eurocontrol uses in its fuel marking Petromark system. The Israeli business is a designer manufacturer and marketer of ED-XRF systems and components used in a wide range of industries including forensics in-situ fraud prevention petrochemicals minerals and homeland security.
Shares of Eurocontrol closed at $0.06 down 7.7% in Toronto on December 31.
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