Business & Finance
Business and Finance
Business and Finance
Wed, March 28, 2012
Tue, March 27, 2012 
March 27, 2012 17:00 ET
Pacific Optical Generates Franchise Fees
CALGARY, ALBERTA--(Marketwire - March 27, 2012) - CanAsia Financial Inc. ("CanAsia") (TSX VENTURE:CNA) announces its wholly-owned subsidiary Pacific Optical Technology (Shenzhen) Ltd. ("POT") has entered into an agreement with Shenzhen KingCome Optoelectronics Co. Ltd. ("KingCome") to design, manufacture and distribute mobile camera modules in China.
Under the arrangement, POT grants KingCome the exclusive right to use POT's production facilities located at Shaji of Shenzhen and support KingCome to develop camera module business at the location. KingCome will pay POT a security deposit of RMB 1 million (approximately Cdn$157,000) and an annual franchise fee of RMB 1.2 million (approximately Cdn$190,000). In addition to the franchise fee, with the consent of POT, KingCome may purchase from POT supplies, technical services and the right to use POT's intangible assets, such as use of trade name, at additional costs. The initial term of the agreement is for two years, renewable by mutual agreement of the parties.
"The arrangement with KingCome is a positive step for POT to move from a production based operator to a knowledge based company. It allows us to generate a steady cash flow at lower risk by applying our technological know-how and expertise in the mobile camera module industry as well as pursuing mobile phone related business more aggressively." Commented by Dr. Woo-Young Kim, Chief Executive Officer of CanAsia.
CanAsia continues to develop and distribute new models of Hyundai mobile phones and seeks revolutionary mobile technologies, business expertise and capital to support its growth.
About CanAsia
CanAsia is an Alberta registered company listed on the TSX Venture Exchange. It engages in the business of original design, manufacture and distribution of Hyundai brand mobile phones for the Philippines and components of mobile camera modules to leading mobile phone and computer makers in China. It is one of the six independent mobile camera module manufacturers in China producing high resolution camera modules higher than 3 mega pixels. Pacific has an in-house Class-100 Clean Room facility which is required for state of the art Chip-on-Board and Chip of Flex technological applications. CanAsia has offices in Canada, Hong Kong, China and the Philippines. ([ www.canasiafinancial.com ])
Forward-looking statements:
This press release may contain forward-looking statements about certain of CanAsia's current plans, goals and expectations relating to future sales of cell phones and financial conditions, performance, results, strategy and objectives. Statements containing the words: 'believes', 'intends', 'expects', 'plans', 'seeks' and 'anticipates' and any other words of similar meaning are forward-looking. All forward-looking statements involve risk and uncertainty because they relate to future events and circumstances beyond CanAsia's control. As a result, CanAsia's actual financial condition, performance and results may differ materially from the plans, goals and expectations set out in the forward-looking statements. Any forward-looking statements are made as of the date of this release and, other than as required by applicable securities laws, CanAsia does not assume any obligation to update or revise them to reflect new events or circumstances. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in CanAsia's disclosure documents on the SEDAR website at [ www.sedar.com ].
The TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) does not accept responsibility for the adequacy or the accuracy of this release.
