JEMTEC signs letter of intent for possible acquisition of BSG Corporation
January 5, 2006 - JEMTEC Inc. (“JEMTEC” or the “Company”) (TSX Venture: JTC) today announced that it has signed a non-binding letter of intent with BSG Corporation (operating as Bison Security Group, or "BSG") and its principals to acquire BSG. JEMTEC is currently conducting due diligence and a binding agreement will only be entered into upon completion of a satisfactory review. The due diligence process is scheduled to be completed in early 2006. It is expected that if an agreement is reached, it will be a cash transaction with a contingent note payable only if certain objectives are achieved. Established in 1980, BSG Corporation has become one of the largest and most respected investigation and security consulting firms in Western Canada. BSG provides services primarily through its Human Resource Consulting Group and its General Investigations Group. BSG Human Resource Consulting includes: • Pre-Employment Screening, through their screening program, EmployRite™ • Confidential Ethics and Compliance Reporting Service through their program, ConfidenceLine™ • Mystery Shopping, a compliancy testing service, through their program ShopRite BSG General Investigations includes: • General investigations and reporting • Insurance investigations and reporting • Technical countermeasure evaluations • Security Consulting Eric Caton, President of JEMTEC, commented that "the acquisition of BSG would add significant new market opportunities in JEMTEC’s field of security and surveillance, while diversifying our consumer base to now include corporate, energy, industrial and retail customers along with existing legal and government markets. JEMTEC notes that changes mandated by the SEC and OSC, requiring corporations to maintain greater vigilance in hiring and monitoring employees, will drive markets for EmployRite™, ConfidenceLine™, ShopRite, and in some cases, require follow up by BSG Investigative Services. Going forward, we expect BSG will become a base for consolidation of similar companies across Canada.” More information about BSG can be found at www.bsgcorp.com. For further information, please contact: JEMTEC Inc. Eric Caton, President & CEO Tel: 877-929-4559 Email: info@jemtec.ca Website: www.jemtec.ca Note: This news release may contain forward-looking information. Actual future results may differ materially. The risks, uncertainties, and other factors that could influence actual results are described in the Company's annual report to shareholders and in SEDAR filings.
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