XPEL Sells Canadian Subsidiary
XPEL SELLS CANADIAN SUBSIDIARY
Improved Working Capital Position
SAN ANTONIO, TEXAS, October 2, 2009…XPEL Technologies Corp. (TSXV: DAP.U) announced today that it has sold its Canadian subsidiary, XPEL Canada, to Nuno Ferreira, of Didsbury, Canada.
XPEL’s CEO, Ryan Pape, commented, “The sale of our Canadian subsidiary is a necessary and prudent way to raise cash to satisfy our obligations given the current economic environment where access to the capital markets is exceedingly difficult. This step will immediately improve our working capital position and will lead to other balance sheet improvements over the coming periods.”
The terms of the sale include total consideration of approximately $880,000 CAD, in the form of $220,000 in cash and a $660,000 long term promissory note.
XPEL and XPEL Canada will continue to work closely together to support further development of the Canadian marketplace by leveraging XPEL’s growing array of products and services. In addition, XPEL will enter in to a software licensing agreement with XPEL Canada to provide XPEL Canada’s customers with continued access to the Design Access Program software.
The Company will report a loss on the sale in the third quarter. Excluding the loss on the sale, the Company anticipates continued profitability from operations.
The transaction is subject to review and has received conditional acceptance from the TSX-Venture Exchange.
XPEL Technologies Corp. is the worldwide leader in the electronic delivery of automotive aftermarket products, utilizing the Internet as an integral component for its design, manufacturing, distribution and customer relationship strategies. The Company’s DAP software utility offers Dealers the industry’s most efficient and productive tool set to better serve customers with “best-in-class” solutions in real-time. XPEL has clear advantages over the competition through its expansive proprietary library of installation-friendly paint and headlight protection and window tint products, coupled with a unique web-based remote manufacturing and distribution software, superior installation training curriculum and world-class facilities, with established and growing sales channels.
Certain statements contained herein (“The sale of our Canadian subsidiary is a necessary and prudent way to raise cash to satisfy our obligations in an environment where access to the capital markets is exceedingly difficult. This step will immediately improve our working capital position and will lead to other balance sheet improvements over the coming periods.” and “Excluding the loss on the sale, the Company anticipates continued profitability from operations.”) are considered “forward-looking statements.” These statements are based upon the belief of the Company’s management, as well as assumptions made beyond information currently available to the Company’s management. Because “forward-looking statements” are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, price competition, the inability to obtain additional capital, loss of key personnel, unavailability of leased facilities, technological changes, service interruptions, equipment failures, customer attrition, general economic conditions, relationships with vendors, government supervision and regulation, changes in industry practices, the inability to settle legal disputes, and other factors.
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.
Chief Executive Officer
John Nesbett/Jennifer Belodeau
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