Advanced ID Corporation, a leading developer of RFID solutions for supply chain applications, fleet operations, animal tracking and tire management, and NovaMeric Ltd., a leading product supplier and product development company, have signed a Sales and Operating Agreement establishing a new US corporation that will capture the revenue of both companies.
NovaMeric supplies a range of innovative, leading edge products that will provide early revenue for the new company. NovaMeric is focused in providing high technology smart building and home automation products, mobile communications devices, active mobile asset tracking systems and a comprehensive product line including electronic voting machines and voter identification for sales around the world. Sales in 2010 and beyond will include energy management solutions, sophisticated elections technologies, off-grid energy supply infra-structure components, as well as other innovative products.
AIDO is active in South America, where the RFID tire management business is gaining widespread acceptance and livestock RFID tracking in an area of the world that has more cattle then people. Those sales will provide early revenue for the new company.
Dan Finch, Advanced ID's president says, "Advanced ID has been working with NovaMeric for almost a year to develop the appropriate corporate structure for the new company. It is important that the resources of both NovaMeric and AIDO be fully committed to the new company. I am delighted to be able to say that we have succeeded. The new company will enjoy early revenue and significant growth over the next year or so in a variety of new markets."
Gerhard Mynhardt, the Managing Director of NovaMeric and the President and CEO of the new company, adds, "We will use our proven ability to innovate highly functional solutions for the sectors which we address. Our aim, furthermore, is to provide quality products and service to our customers. An ability to rapidly adapt to market demand, along with flexibility to give our customers what they require to be successful in their own businesses, will be a cornerstone of our strategy to achieve growth via an expanding base of satisfied customers."
Advanced ID will own 40% of the new company and NovaMeric will own 60% of the new company. Advanced ID has an initial $100,000 requirement to fund the new company, due in 45 days. This provides for the appropriate ownership of the products that NovaMeric is contributing to the new company. The transaction is subject to the necessary regulatory approvals.
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