Northstar Electronics selected for exclusive interview in Europe
Interview is a tribute to our strong team and technology and should result in investment in our company over the long term
VANCOUVER, British Columbia, May 11, 2012 /PRNewswire/ -- Northstar Electronics, Inc. (OTCBB – NEIK), which previously signed a Letter of Intent to acquire Echotec Sonar Corp., announces that Echotec and Northstar have just given an exclusive interview about the sector, the company, and its strategy.
Global Security Finance, in London, is a subscription-only platform covering business news in the cyber, homeland, and defense sectors, and caters to venture capital funds, private equity, as well as large trade associations.
The interview is published on http://www.globalsecurityfinance.com . We include below the text of the publication.
INTERVIEW: Northstar Developing High Definition Sonars for Multiple Market Opportunities
Northstar Electronics, Inc. has two main areas of expertise: defense contracting and developing systems based on leading edge technologies.
As a contractor, the Delaware incorporated company with operations in Canada, focuses on the aerospace and navy sectors. It has built aviation parts and command and control consoles for US security and defense giant Lockheed Martin Corp. (LMT) and consoles for navy frigates for a subsidiary of L-3 Communications Corp. (LLL). From a technology standpoint, Northstar's specialty is the sonar business, where it developed its own systems for commercial fishing, and more importantly, in conjunction with Lockheed Martin, developed systems for the detection of potential underwater terrorist threats to protect navy ships.
Northstar has been making headlines recently as it is set to acquire Echotec Sonar Corporation, a development stage sonar technology company targeting the defense, scientific, commercial shipping and commercial fisheries markets. Echotec's new technology provides 3-D High Definition images from small footprint devices, making the need for heavy and expensive equipment unnecessary.
As part of the deal, Echotec's CEO, Phillip Johnson joins Northstar's Board of Directors. Johnson, an expert in sonar systems, who holds seven patents in the field, previously worked in a senior position at Lockheed Martin Canada where he" pioneered wide band sonar technology". Other key members of the Echotec team also worked in Lockheed Martin's sonar group under Johnson.
"What initially was supposed to be a technology partnership turned into an acquisition for us," said Dr. Wilson Russell, President of Northstar. "The 'sonar' business was our original core business, and it was only later that we diversified into defense contracting. We were looking for opportunities to solidify our sonar offerings and we see Echotec bringing another dimension and a strong source of revenue for Northstar, expanding our market reach. Echotec has very valuable relationships within the defense, anti-terrorism, scientific and commercial sectors. With continued internal and third party investment in Echotech, we expect our sonar line will be the strongest, most visually acute in the industry."
Johnson adds: "Operating in both commercial and defense markets enables us to have a steadily increasing revenue stream, even at a time when defense budgets are tight."
Echotec, which will become a wholly-owned subsidiary of Northstar, has core technologies that can be used to develop systems for defense and anti-terrorism/homeland security to help prevent underwater or small surface craft attacks on naval ships, harbors and naval bases. "In addition, we are looking to see if we can adapt our systems to the commercial shipping space, for obstacle avoidance purposes and ship security when in unsavory ports, for example," Russell says. "We also see cruise ships as a potential market for us, to detect any suspicious activity going on around the ship. There is some resonance there with our current specializations."
Both Russell and Johnson agree that, from a geographical standpoint, expansion to the diversity of markets in Western Europe "makes sense," as well as to Latin America, to target the commercial markets there.
"We initially planned to use a single commercial sector as a revenue base to build on, and taking those funds to expand our company into other sectors, both product-wise and geographically," continues Russell. "However, we have changed our plan – we are now looking for external funding partners in order to inject the necessary capital to execute on multiple developments at the same time – i.e. to develop systems for use in multiple sectors, according to the needs of each."
Finally, Dr. Russell says that Northstar/Echotec are interested in establishing working relationships with companies in Europe, either through partnerships for joint projects or in contractual arrangements. Another objective is to explore opportunities to raise working capital from European entities or individuals.
Contact the reporter on this story, Amelie Labbe Thompson at firstname.lastname@example.org"
Echotec Sonar Corporation is a private Canadian company. The founders have over eighty combined man-years of expertise developing high frequency sonar products within the defense and commercial fishing industries. Echotec Sonar is a world leader in this field through experience, technical acumen, and a team diversity, which understands the needs of many defense and commercial entities. http://www.echotec.ca
Northstar Electronics, Inc., is a holding company with executive management specialized in design engineering, defense, advanced systems, security, sonar, systems integration, and prototyping fields. Northstar is actively pursuing opportunities through acquisition, joint venture, or merger to increase revenues and expand its base of subsidiaries. www.northstarelectronics.com
For further information contact Rich Kaiser, Investor Relations, YES INTERNATIONAL, email@example.com, 1-757-306-6090
Safe Harbor Statement
This press release contains forward-looking statements. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the company's current plans and expectations, as well as its future results of operations and financial condition. Such risks include, but are not limited to, the effects of competition with existing enterprises and/or new entrants into the company's markets and industries, fluctuations in currency exchange rates, domestic and global economic conditions generally, the company's ability to obtain financing and attract suitable personnel where required to fully implement its business plan, the adoption and acceptance by the marketplace of the company's technologies and product and service offerings, the possibility of new technologies that are competitive with the company's planned product and service offerings and the effects of future political and economic developments both in the United States and abroad, among others. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of information, future events or otherwise.
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