Photon Control Enhances Plan to Increase Investor Representation and Transparency
Burnaby, B.C., October 24, 2016 – Photon Control Inc. (“Photon Control” or the “Company”) (TSX-V: PHO), a leading developer of optical measurement technologies, is implementing measures to increase shareholder value through the repurchase of Company shares, by strengthening the board of directors with the addition of new directors, and launching a proactive investor relations program.
In response to multiple shareholder suggestions, the Company is actively evaluating opportunities to further improve the composition of its board of directors through the addition of two shareholder directors. This process follows the July 2016 appointment of Ronan McGrath, former President of Rogers Shared Services, CIO of Rogers Communications and CN Rail, to its board of directors. Company chairman and acting CEO, Michael Goldstein, added: “We are committed to strengthening our board with the addition of seasoned and talented individuals like Ronan, who have proven track records creating significant shareholder value.”
Photon Control recently initiated a program to invest a minimum of 20% of the Company’s annual free cash flow into its Normal Course Issuer Bid (“NCIB”). Since the program was authorized in December 2015, the Company has purchased 319,500 common shares with 4,680,500 common shares remaining available for repurchase under the NCIB. Photon Control intends to proceed with this plan at times when trading black-outs are not in effect.
“With more than $26 million of cash and cash equivalents, our balance sheet strength enables us to return value to shareholders through the share repurchase program,” said Goldstein. “As we have previously communicated, we believe our common stock presents an attractive investment opportunity for our company and we remain committed to pursuing this program indefinitely.”
Photon Control also has retained Liolios Group (“Liolios”) to lead an expanded strategic investor relations and financial communications program. Liolios will collaborate with management to execute a proactive capital markets program, with the objective of further improving shareholder communications and expanding the Company’s shareholder base.
“We believe it is important to not only proactively communicate our Company’s unique value proposition to the broader investment community, but to also establish a strong capital markets presence from which we can support and scale our business,” added Goldstein. “The hiring of Liolios is yet another example of the positive steps we have taken to increase shareholder communication and transparency, which includes hosting the Company’s first ever conference call to discuss quarterly financial results last August, enhancing investor dialogue, and providing for more responsive board access. We look forward to working with Liolios to help further elevate our profile within the financial community.”
Pursuant to the investor relations agreement between the Company and Liolios, Liolios will be providing consulting services to the Company, which include development, implementation, and maintenance of an investor relations program that increases investor awareness of the Company’s activities and stimulates investor interest in the Company. Liolios will provide these services over a contracted three- month period, and on a month-to-month basis thereafter. In consideration for the services provided, the Company will pay Liolios US $8,000 per month in addition to reimbursement for reasonable expenses.
About Photon Control Inc.
Photon Control Inc. designs, manufactures and distributes a wide range of optical sensors & instruments to measure temperature, pressure, position, and flow. These products are used by original equipment manufacturers (OEM) as well as end-users in the Semiconductor, Oil and Gas, Power, Life Science, and Manufacturing industries. Photon Control’s products provide high accuracy and reliability in extreme conditions and are supported by a team of experts that offer onsite installation, training, and support. Photon Control Inc. also provides engineering services for customized optical measurement systems. Headquartered in an ISO 9001:2008 manufacturing facility in Burnaby, BC, Photon Control Inc. is listed on the TSX Venture Exchange, trading under the symbol ‘’PHO”. Additional information about the company can be found at www.photon-control.com/investorrelations.html
This news release contains forward looking statements, including statements relating to the Company’s intentions to purchase common shares under the normal course issuer bid, as well as statements regarding the the investor relations program and business and anticipated financial performance of the Company, which involve risks and uncertainties. Although the Company believes that the proposed purchase of common shares under the normal course issuer bid is based upon reasonable assumptions and expectations, these risks and uncertainties may cause the Company’s actual results to differ materially from those contemplated or implied by the forward-looking statements. Factors that might cause or contribute to such differences include, among others, general economic conditions, the performance of the common shares of the Company or stock markets generally, ongoing litigation regarding ownership of intellectual property, competitive pressures, competing technologies and the market acceptance of the Company’s photonic-based products as a replacement to existing technologies and products. Readers are encouraged to consider the other risks and uncertainties discussed in and additional information contained in the Company’s financial statements and filings filed on SEDAR at www.sedar.com.
Forward-looking statements are based on the beliefs, opinions and expectations of the Company’s management at the time they are made, and the Company may, but does not assume any obligation to, update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances, should change except as may be required by applicable securities laws. Readers should not place undue reliance on forward-looking statements.
Investor Relations Contact:
Liolios Group, Inc.
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.
News Release 15-16