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Sylogist Announces Landmark Intellectual Property and Business Investment

^{Published on 2011-03-29 13:25:41 - Market Wire}
 

CALGARY, March 29 /CNW/ - Sylogist Ltd. (TSXV: SYZ), a leading provider of intellectual property solutions to public and private sector customers, is pleased to announce it has provided investment financing of up to US $2 million, by a combination of  equity and convertible, secured debt, to an Alberta-based, private company.

Coincident with the investment, the private company has entered into a joint development agreement with Lockheed Martin, which provides the private company with exclusive, world-wide intellectual property rights to the design, development, manufacture and production of multiple variants of hybrid heavy lift aircraft. The agreement further provides for the completion of development and manufacture of hybrid aircraft, with the first flight of a 20 ton payload variant of the airship scheduled for mid-2012.  The reader is referred to the joint press release of Lockheed Martin and the private company, which has been filed concurrently on SEDAR.

Sylogist, the lead investor in the private company, is pleased to join its co-investor, Emirates Associated Business Group, from the United Arab Emirates, and other investors from Canada and the United States, in this ground-breaking, technological and commercial endeavour.

"We are thrilled to be working with Sylogist and its principals, along with management of this truly Canadian and international venture.  We welcome their technological and commercial acumen as we work to bring these hybrid aircraft to market," said Peter S. DeRobertis, the Lockheed Martin Hybrid Heavy Lift Capture Manager.

"Sylogist has succeeded to date by strategically acquiring and investing in technology, while efficiently operating for profitability.  This technology investment presents a highly prospective and revolutionary opportunity which will benefit from our strong operating discipline.  We see tremendous opportunity for our investors and partners as we move towards commercial deployment," stated Jim Wilson, President & Chief Executive Officer of Sylogist.

Pursuant to the financing arrangement, Sylogist has subscribed for units, comprising common shares and common share purchase warrants, and agreed to lend the private company up to US $1.5  million on a convertible, secured basis.  The loan matures in one year, outstanding principal bears interest at 10% per year and is convertible, at Sylogist's election, into common shares and common share purchase warrants.   In the event the full loan amount  is drawn, and Sylogist (along with its co-investors) elects to convert the loan to shares, it would hold an approximate  35% interest in the private company (40% fully diluted).   Sylogist's net cash position after this investment remains at more than $0.75 per share.

About Sylogist

Sylogist is a technology innovation and licensing company which, through strategic acquisitions, investments and operations management, provides intellectual property solutions to a wide range of public and private sector customers.  The Company's stock is traded on the TSX Venture Exchange under the symbol SYZ. Information about Sylogist can be found at [ http://www.sylogist.com ].

About Lockheed Martin

Headquartered in Bethesda, Md., Lockheed Martin is a global security company that employs about 132,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation's 2010 sales from continuing operations were $45.8 billion.

About Hybrid Airship Technology

Hybrid airships combine buoyant, aerodynamic and direct lift technologies to carry large payloads long distances at low cost.  The airships are capable of take-off and landing from unimproved surfaces, including land and water, providing point-to-point access to remote locations or connectivity to cargo networks.  Environmentally sound, airships use a small fraction of the fuel consumed by conventional aircraft and require little or no infrastructure for take-off, landing or securing the vessel.  The hybrid airships being developed and produced under the exclusive Lockheed Martin agreement are planned in three variants (short haul, regional haul and global haul) capable of carrying payloads of 20 to several hundred tons over long distances.    The smaller variant is capable of vertical take-off and landing, providing capabilities with greater load and range at a fraction of the cost of a helicopter.

Hybrid airships provide a direct, timely, economical and environmentally conscious logistics solution for much of the world's annual 36 billion tons of cargo.  An overview of Lockheed Martin hybrid airship technology can be viewed at:  [ http://www.youtube.com/watch?v=CKAyJ3zKTus ]

Forward-looking Statements

This news release contains forward-looking statements relating to the future operations of the Corporation and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects" and similar expressions. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Such forward-looking statements are subject to important risks, uncertainties and assumptions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Sylogist. As a result, we cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information.  Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release, and Sylogist does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by Canadian securities law.

This press release is not for distribution to United States Newswire Services or for dissemination in the United States.

-Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release -