Zecotek Signs Agreement with Shanghai Fortune Techgroup to Market and Distribute LFS Crystals in China
Zecotek Photonics Inc. ("Zecotek" or the "Company") (TSX-V: ZMS, Frankfurt: W1I, OTCPK: ZMSPF), a developer of leading-edge photonics technologies for healthcare, industrial and scientific markets, is pleased to announce that it has signed a marketing and distribution agreement with the Shanghai Fortune Techgroup Co. Ltd., a China-based authorized distributor of integrated circuits and related optoelectronic products, to generate sales of its patented LFS crystals to customers in China.
"The Shanghai Fortune Techgroup is a well-established distributor of photonic technologies with customers in China and around the world, and we are very pleased that they will now include our patented LFS scintillation crystals on their product list," said Dr. A.F. Zerrouk, Chairman, President, and CEO of Zecotek Photonics Inc. "The partnership with the Fortune Techgroup was prompted by the recent equity investment into Zecotek Imaging China by a local investor, and it complements the existing relationship we have with the Shanghai EBO Optoelectronics Company. Zecotek will be able to leverage their broad networks and experienced sales teams both in and out of China. Furthermore, due to the size and the financial strength of the Fortune Techgroup, Zecotek will also be able to take advantage of more favorable payment terms which will improve cash flow and minimize customer payment risks. With better payment terms offered through distributers, crystal production and handling will be more finely tuned with improved efficiencies. We look forward to initiating production at our new facility and working closely with the Fortune Techgroup to sell our crystals."
Shanghai Fortune Techgroup Co. Ltd. is publicly traded on the Shenzhen Stock Exchange (300493.SZ) with a market cap of approximately $700 million and annual sales of $300 million (2016) from the distribution of a wide range of technical products and support services including integrated circuit application solutions to global customers. There is a natural synergy with Zecotek's LFS crystals and the other optoelectronic products currently distributed by Fortune Techgroup. Fortune group will aggressively market the LFS crystals through its broad sales networks in China and around the globe.
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