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Bioscrypt Completes Cognizance Acquisition
Toronto, ON -- March 7, 2005
Bioscrypt Completes Cognizance Acquisition
Transaction Solidifies Software Licensing Revenue Stream
Toronto , ON (March 7, 2005) - Bioscrypt Inc. (TSX: BYT), a leading provider of identity verification technology, announced today that it has completed its acquisition of Cognizance, a privately-held company headquartered in Dublin, California.
Initial consideration of up to US$7 million will be paid through the issuance of approximately 3.7 million shares (having a value of US$6.05 million) and the payment of US$0.50 million of cash at closing and through the issuance of up to US$.455 million of additional shares eighteen months after closing. As well, if the Cognizance business attains certain financial targets, a maximum of US$5 million of further consideration, payable in shares, may become payable in 2006, for potential total consideration of US$12 million. All of the issued shares are subject to certain hold periods ranging from six to eighteen months. As a result of the transaction Bioscrypt now has 58.9 million shares outstanding.
“The acquisition of Cognizance extends our ability to generate high margin licensing revenue,” said Robert L. Williams, President and CEO of Bioscrypt. “In July of last year, we partnered with Cognizance and became a reseller of their technology to further our Door to Desktop™ strategy, as Cognizance provided the required desktop credential management software application. As a united organization, we will generate significant licensing revenue in 2005 and be in position to further our licensing revenue growth for many years to come.”
About Bioscrypt Inc.
Bioscrypt Inc. is a leading provider of identity verification technology. The Company's solutions combine the convenience of touch with the high security of fingerprint-based biometrics for simple and secure access to facilities, equipment and information. Using the "bioscrypt on board™" brand, the Company offers packaged products, OEM components and software licensing to leading security solution manufacturers and integrators worldwide for physical, wireless and network security applications. Among the many leading edge companies and partners using Bioscrypt technology are the U.S. Army, NASA, American Express, the New York Police Department, Kronos, NATO, Continental Airlines, Intel, Atmel, HID Corporation, Honeywell and Northern Computers. Bioscrypt's patented technology is interoperable with leading fingerprint sensors and is both platform and operating system independent. Bioscrypt is traded on the Toronto Stock Exchange under the symbol BYT. For more information, visit the Bioscrypt Web site at www.bioscrypt.com .
Forward-looking
(safe harbour) statement
Statements made
in this news release that relate to
future plans, events or performances
are forward-looking statements. Any
statement containing words such as
"believes", "plans",
"expects" or "intends"
and other statements which are not
historical facts contained in this
release are forward-looking, and these
statements involve risks and uncertainties
and are based on current expectations.
Consequently, actual results could
differ materially from the expectations
expressed in these forward-looking
statements.
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Bioscrypt Inc., Bioscrypt and V-Smart,
are trademarks of Bioscrypt Inc. All
other trademarks or registered trademarks
referenced herein are properties of
their respective owners.
For more information, contact:
Matthew Bogart
Bioscrypt Inc.
905-624-7717
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