TORONTO, ONTARIO -- (Marketwire) -- 05/11/12 -- Firan Technology Group Corporation (TSX:FTG) announced today that it has entered into a new banking agreement with the world's local bank, HSBC Bank Canada ("HSBC"). The $31,200,000 committed, four-year credit facility is a combination of:
-- U.S. $6,000,000 4-year committed Operating Facility -- U.S. $6,000,000 4-year committed Revolving term Loan -- U.S. $12,000,000 Foreign Exchange Forward Contracts Line -- U.S. $1,000,000 Precious Metal Forward Contracts Line -- U.S. $ 6,000,000 Interest Swap Line -- Cdn $200,000 Master Card Line
"We are extremely pleased about our new banking facilities with HSBC. The entire HSBC team has demonstrated an eagerness, flexibility and desire to partner with a high tech firm of our size. This agreement will support the Corporation in achieving its long term international growth and expansion objectives", stated Mr. Joe Ricci, Vice President and Chief Financial Officer of FTG.
"These banking facilities are an extremely important milestone for FTG and will help enable us to move forward with our internal and/or external international growth plans", added Mr. Brad Bourne, President and Chief Executive Officer.
In addition Mr. Bourne announced that a settlement was agreed to between the Corporation and two plaintiffs who had commenced a legal claim against it in 2006, seeking damages for an alleged migration of chemicals onto theirs lands from the Corporation's former Toronto factory. The settlement also includes the current owner of the subject lands and the bankrupt estate of Glendale International Corp. ("Glendale"), another former owner of the subject lands. Glendale earlier agreed to indemnify the Corporation for the claim and the contribution of the Corporation to this settlement will not have a material effect on its financial situation. Certain conditions of the settlement agreement are still to be completed at which time the claim will be dismissed and the Corporation will receive a final release.
ABOUT FIRAN TECHNOLOGY GROUP CORPORATION
FTG is an aerospace and defense electronics product and subsystem supplier to customers around the globe. FTG has two operating units:
FTG Circuits is a manufacturer of high technology, high reliability printed circuit boards. Our customers are leaders in the aviation, defense, and high technology industries. FTG Circuits has operations in Toronto, Ontario and Chatsworth, California.
FTG Aerospace manufactures illuminated cockpit panels, keyboards and sub-assemblies for original equipment manufacturers of aerospace and defense equipment. FTG Aerospace has operations in Toronto, Ontario; Chatsworth, California and Tianjin, China.
The Corporation's shares are traded on the Toronto Stock Exchange under the symbol FTG.
This news release contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. Such statements are based on the current expectations of management of the Corporation and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Corporation's industry, generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Corporation and not place undue reliance on forward-looking statements. Other than as may be required by law, FTG disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
Additional information can be found at the Corporation's website www.ftgcorp.com.