Mitec Telecom agrees to reverse takeover by Israel-based Optiway

MONTREAL – Radio frequency products manufacturer Mitec Telecom Inc. (TSX:MTM) has agreed to a reverse takeover by Israel-based Optiway Inc., the Montreal company said Friday.

Mitec shareholders will own between 30 and 40 per cent of the combined company. Financial details weren’t provided.

“The combination of Mitec, a TSX listed company with Optiway, a privately held Israeli company, has the potential to result in a successful global company with strong patented intellectual property, engineering capability, sales and marketing reach and capital market experience,” chief executive Jeffrey Mandel said in a news release.

Get weekly money news

Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.

Sign up for weekly money newsletter Get Started

By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

Mitec is looking for growth opportunities to exploit its infrastructure and background knowledge in wireless technology, Mandel said.

The agreement still requires shareholder and regulatory approvals in both Canada and Israel.

Mitec said it will provide between $3.5 million and $5 million cash at closing, which will determine the exact percentage ownership allocated to Mitec shareholders.

The company also said it expects the initial closing involving the acquisition of some assets from its VSAT division to a group of its senior employees to occur before the closing of the transaction with Optiway.

Earlier this week the TSX announced that Mitec was under review for possible delisting by the Toronto Stock Exchange and had been granted 120 days in which to regain compliance with the exchange’s requirements under its remedial review process.

Mitec supplies radio frequency to the telecommunications and satellite communications industries.

Optiway, founded in 2004, has optical fibre products that enable wireless communication to take place in buildings such as office towers, universities, hospitals, business campuses, parking garages, stadiums and tunnels.