Sydney, Feb 22, 2006 (ABN Newswire) - QRSciences (ASX: QRS) (PNK: QRSHY), a developer of advanced sensor and detection technology announced today that, through its wholly-owned subsidiary QRSciences Corporation, it has finalised a transaction for the acquisition of up to 27.4% of Spectrum San Diego Incorporated (Spectrum).
Terms of the agreement include the acquisition of preferred Spectrum stock for a combined cash and equity payment of US$2.6 million with an option to buy all the outstanding common stock on or before February 18, 2009. The Company will gain various preferential and protective rights customary for an investment of this nature including the right to appoint a nominee to the Spectrum board of directors, initially Mr. Kevin Russeth, QRSciences' Chief Executive Officer.
Spectrum is based in San Diego, California and specializes in the design and commercialisation of electronic imaging and instrumentation systems including X-ray devices for personnel and baggage screening and innovative ultra high resolution and wide field of view surveillance cameras. The group has expertise in X-ray physics, digital signal processing, X-ray sources and detectors, analogue and digital electronics and system integration.
QRSciences plan to relocate their US based staff to Spectrum's facility in San Diego.
Simon Bedford, VP Business Development of QRSciences said "Both companies share a common business model based on the development and commercialisation of cutting edge technology with cost offset through contract research, grants and outsourced engineering services. Collocation of our product development and engineering teams will drive growth through the creation of integrated devices based on the well known synergies of our existing QR, X-ray, metal detection and imaging technologies plus allow us to address a wider range of emerging opportunities from a broader combined engineering base."
Kevin Russeth, Chief Executive Officer of QRSciences added "We share many of the same government and private customers for both product sales and R&D funding and both groups are highly regarded in the security and detection industry. We feel these same customers will look on this new partnership very favourably enhancing marketing and sales efforts and creating new business opportunities in North America. The collaboration will also create economies of scale across the businesses and augment the engineering and design capability in both Australia and San Diego."
Dr. Steven Smith, President and Founder of Spectrum commented "Along with the exciting new product opportunities, QRSciences investment provides working capital for Spectrum to build its range of SentryScope surveillance products, increasing market penetration and building on the early success of over 100 units sold worldwide to date. We are also looking forward to the imminent market introduction of our CastScope X-ray equipment used for screening plaster casts and prosthetics. The CastScope was developed under funding from the US Transportation Security Administration (TSA) and is shortly to commence initial field trials at an undisclosed location in the United States."
About Spectrum:
Founded in 1998, Spectrum San Diego, Inc is a product development group specialising in the design of electronic imaging systems and instrumentation. The Company's founder and president is Dr. Steven Smith a noted expert in electronics design, X-ray imaging and Digital Signal Processing.
Spectrum's primary focus is the invention, development and commercialisation of novel imaging systems with efforts focused on two branded products, SentryScope and CastScope; and ongoing funded research and development projects.
Over the last seven years Spectrum has executed contracts and grants for the National Science Foundation, National Institute of Health, Transportation Security Administration, United States Air Force, InVision Technologies, Rapiscan Security Products and others.
For more information about Spectrum please visit: http://www.spectrumsdi.com or http://www.sentryscope.com
Terms of the agreement include the acquisition of preferred Spectrum stock for a combined cash and equity payment of US$2.6 million with an option to buy all the outstanding common stock on or before February 18, 2009. The Company will gain various preferential and protective rights customary for an investment of this nature including the right to appoint a nominee to the Spectrum board of directors, initially Mr. Kevin Russeth, QRSciences' Chief Executive Officer.
Spectrum is based in San Diego, California and specializes in the design and commercialisation of electronic imaging and instrumentation systems including X-ray devices for personnel and baggage screening and innovative ultra high resolution and wide field of view surveillance cameras. The group has expertise in X-ray physics, digital signal processing, X-ray sources and detectors, analogue and digital electronics and system integration.
QRSciences plan to relocate their US based staff to Spectrum's facility in San Diego.
Simon Bedford, VP Business Development of QRSciences said "Both companies share a common business model based on the development and commercialisation of cutting edge technology with cost offset through contract research, grants and outsourced engineering services. Collocation of our product development and engineering teams will drive growth through the creation of integrated devices based on the well known synergies of our existing QR, X-ray, metal detection and imaging technologies plus allow us to address a wider range of emerging opportunities from a broader combined engineering base."
Kevin Russeth, Chief Executive Officer of QRSciences added "We share many of the same government and private customers for both product sales and R&D funding and both groups are highly regarded in the security and detection industry. We feel these same customers will look on this new partnership very favourably enhancing marketing and sales efforts and creating new business opportunities in North America. The collaboration will also create economies of scale across the businesses and augment the engineering and design capability in both Australia and San Diego."
Dr. Steven Smith, President and Founder of Spectrum commented "Along with the exciting new product opportunities, QRSciences investment provides working capital for Spectrum to build its range of SentryScope surveillance products, increasing market penetration and building on the early success of over 100 units sold worldwide to date. We are also looking forward to the imminent market introduction of our CastScope X-ray equipment used for screening plaster casts and prosthetics. The CastScope was developed under funding from the US Transportation Security Administration (TSA) and is shortly to commence initial field trials at an undisclosed location in the United States."
About Spectrum:
Founded in 1998, Spectrum San Diego, Inc is a product development group specialising in the design of electronic imaging systems and instrumentation. The Company's founder and president is Dr. Steven Smith a noted expert in electronics design, X-ray imaging and Digital Signal Processing.
Spectrum's primary focus is the invention, development and commercialisation of novel imaging systems with efforts focused on two branded products, SentryScope and CastScope; and ongoing funded research and development projects.
Over the last seven years Spectrum has executed contracts and grants for the National Science Foundation, National Institute of Health, Transportation Security Administration, United States Air Force, InVision Technologies, Rapiscan Security Products and others.
For more information about Spectrum please visit: http://www.spectrumsdi.com or http://www.sentryscope.com
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About QRSciences Holdings Limited
QRSciences Holdings Limited is based in Perth, Western Australia with offices in San Diego, California. The company designs, develops and sells advanced technology systems, sub-systems, components and software for security related applications. Applications for its technologies include the detection of explosives and narcotics, metal detection and imaging, surveillance and monitoring, chemical manufacturing quality control and assurance, mineral and material assay, and lab instrumentation.
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