Adeptron and Artaflex Enter RTO LOI

Adeptron Technologies Corporation (TSX-V: ATQ) and Artaflex Inc. have entered into a letter of intent (LOI) dated October 25, 2011 to consummate a merger which will constitute a reverse takeover (RTO) of Adeptron by Artaflex.

Following completion of the RTO transaction, Artaflex’s shareholders will own approximately 75% of the combined company and Adeptron’s existing shareholders will own approximately 25%. In conjunction with the transaction, Artaflex has agreed to advance Adeptron $0.5 million by way of a secured subordinated loan, which carries interest at 12% per annum. R.H. Global Technologies Ltd., who currently holds approximately 62% of the issued and outstanding common shares of Adeptron, has agreed to support the transaction. Markham, Ontario based Artaflex is an integrated product development, commercialization and manufacturing company providing services to original equipment manufacturers (OEM) requiring expertise in a high mix and high complexity manufacturing environment. Artaflex is controlled by Paul Walker, President of Artaflex. Walker, former founder and CEO of SMTC Manufacturing Corporation, acquired Artaflex in late 2010 for an undisclosed amount.