Synodon Focused on Reducing Costs
By Marketwired News
By Marketwired News
EDMONTON, ALBERTA–(Marketwired – May 28, 2015) – Synodon Inc. (“Synodon” or the “Company”) (TSX VENTURE:SYD) announces that it reached an agreement with Nimal Rodrigo, the Company’s Chief Operating Officer (the “COO”), and Deborah Rodrigo, the Company’s Chief Financial Officer (the “CFO”), whereby a portion of their salaries can, at the discretion of the Company, be paid in shares until the Company becomes cash flow positive. The estimated maximum value of the shares to be issued pursuant to these agreements is $60,000 per annum.
The Company’s Executive Chairman, Paul van Eeden, has agreed to accept a reduced salary of one dollar per annum until such time as the Company becomes cash flow positive.
The annual cash savings to the Company is anticipated to be approximately $300,000 and is part of the Company’s efforts to reduce its cash overhead costs.
“Nimal and Deborah’s offer to accept Synodon shares instead of cash demonstrates their confidence in our Company, and is just one example of the effort and teamwork everyone is bringing to the table to ensure Synodon’s success,” said Paul van Eeden, Synodon’s Executive Chairman.
“Our goal is to provide the highest quality early leak detection service possible to oil and gas pipeline operators. At the same time we are relentlessly working to reduce our cash costs to improve the Company’s cash flow,” continued Mr. Van Eeden.
Any shares issued in lieu of cash shall be issued subject to prior approval of the TSX Venture Exchange and the value of the shares shall not be less than the Discounted Market Price, as defined in the policies of the TSX Venture Exchange at the time of issue.
Synodon Inc. (www.synodon.com) is a technology company that has developed an advanced airborne remote gas sensing system called realSens™, based on technologies developed under the Canadian Space Program and by Synodon scientists. The company currently provides advanced airborne pipeline integrity management services to the oil and gas sector through a suite of services including natural gas and liquid hydrocarbon leak detection, pipeline threat assessments, and waterway crossings analysis among others.
This press release includes forward-looking statements about Synodon Inc., including the effect of cost reduction measures. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as ‘expects’, ‘anticipates’, ‘intends’, ‘plans’, ‘believes’ or negative versions thereof and similar expressions.
Forward-looking statements reflect our current beliefs and are based on information currently available to us and on assumptions that we believe are reasonable. These assumptions include, but are not limited to, our ability to predict market demand the effect of our cost reduction measures. Actual results and developments may differ materially from the results and developments discussed in the forward-looking statements as they are subject to a number of significant risks and uncertainties which can be beyond our control. These include, but are not limited to, general economic conditions in the countries that we are pursuing contracts in, currency fluctuations and other changes in the competitive environment that Synodon operates in. For more information, please see the discussion on the principal risks that could affect our results under the section “Risks Relating to Our Business” of Synodon’s 2014 MD&A. The reader is cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements. Forward-looking statements in this press release are made to describe management’s expectations and assist shareholders in understanding our financial position. Readers are cautioned that the forward-looking statements presented in this press release may not be appropriate for other purposes. We are under no obligation (and expressly disclaim any obligation) to update or alter the forward-looking statements whether as a result of new information, future events or otherwise unless specifically required by applicable securities legislation.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Paul van Eeden