Sequiam’s Chinese Joint Venture Receives Government Approval
Sequiam Corporation, through its wholly owned subsidiary Sequiam Biometrics, Inc., a leading provider of biometric technology and services, announced today that the Chinese Government has approved its Joint Venture Agreement with Changjiang Computer Group Corporation (”CJCGC”) and Magstone Innovation, Inc. (”Magstone”).
On April 27, 2006, Sequiam entered into a Joint Venture Agreement (the “Agreement”) with Changjiang Computer Group Corporation (”CJCGC”) and Magstone Innovation, Inc. (”Magstone”). The name of the Joint Venture is Shanghai Changjiang Intelligence Information Technology, LTD (”the JV”). The JV will be headquartered in Shanghai. The purpose of the agreement is to develop and market biometric and other IT products and applications in China and other regions and to support Sequiam by providing research and development for new products. The Agreement grants Sequiam exclusive rights to distribute those products in North America, Europe and Africa.
The JV is owned 30% each by Sequiam and Magstone and 40% by CJCGC. Kevin Henderson, President of Sequiam Biometrics will travel to Shanghai September 12, 2006 to attend the first Board Meeting of the Joint Venture and to finalize terms of business for projects that have been in development since the agreement was first signed last April. Details of the Joint Venture agreement were included in Form 8K filed with the Securities and Exchange Commission on May 3, 2006.
The JV will act as the exclusive distributor of certain Sequiam biometric products and services in China and Greater Asia. In addition, Sequiam will act, during the term of the agreement, as the exclusive biometric designer and manufacturer of biometric products for the JV.
The agreement allows Sequiam to add all biometric products developed for and funded by the JV to its existing biometric product line for distribution to all other global markets outside of China and Greater Asia. The first product developed by the JV is code-named “HDT” or Health Data Terminal, a biometric personal digital assistant, and is slated for release later this year.
Bob Yang, CEO of CJCC, said: “After having evaluated numerous global leading biometric technology firms, we concluded that Sequiam has the strongest and broadest biometric technology base and the ability to integrate that technology into a variety of consumer products.”
Nick VandenBrekel, CEO of Sequiam Corporation, said: “Approval by the Chinese Government marks yet another major milestone in the development of Sequiam and allows us to get on with the important business of the JV.”