Patriot One Technologies Inc., developer of the PATSCAN Multi-Sensor Covert Weapon Detection Platform, is pleased to announce the acquisition of XTRACT Technologies Inc. and all its related interests, assets, and intellectual property for consideration of $6,000,000 and the issuance of 9,422,956 Patriot One common to XTRACT's former shareholders.
Subject to certain exceptions based on the business of the Company or the performance of the Company's common share price, the Consideration Shares will be subject to escrow restrictions and released on a quarterly basis over the next twelve consecutive fiscal quarters of Patriot One. The Transaction follows demonstrated success of an ongoing collaborative project between the two firms that was announced in late July 2019.
Concealed threat and disturbance detection
The XTRACT acquisition is part of an ongoing strategic initiative by the Company to bring together leading-edge technologies and services that will enhance the power of its PATSCAN Platform, which offers a layered, multi-sensor approach to concealed threat and disturbance detection.
During this period we've already seen great progress in opportunities for enhanced detection accuracy"
"Just over a month ago, we announced a development project with XTRACT, and during this period we've already seen great progress in significant opportunities for enhanced detection accuracy" said Martin Cronin, Patriot One's CEO and President.
"With new sales opportunities arising every day for a covertly deployed, multi-sensor security solution, integrating XTRACT more deeply into our development and day-to-day operations made perfect sense. We are thrilled to have this highly talented group join our ranks; as they share our vision for creating a world safer from acts of mass violence."
Expertise in AI and machine learning
The XTRACT team will bring additional leading-edge expertise in artificial intelligence (AI) and machine learning to the Patriot One staff. XTRACT's novel neural network architecture and data fusion techniques are robust, efficient and require less memory than comparable standards. With several strategic PATSCAN deployment initiatives in progress, including with Johnson Controls International and Bleutech Park-Las Vegas announced over the last month, the Company sees this move as both necessary and a key differentiator for its future platform development.
Following from the acquisition, former XTRACT Chairman and CEO Kevin O'Neill has been retained as an advisor to Patriot One and been invited to join Patriot One's Board of Directors. Mr. O'Neill has many years of experience investing in growth technology companies, following his early career in investment banking with Merrill Lynch. He has been a private investor and advisor to numerous successful early-stage technology businesses, including, among others, a telecommunications company acquired by Microsoft.
Implemented solutions for various clients
XTRACT has developed and implemented solutions for military, government, industrial and transportation clientsAs a wholly owned subsidiary, XTRACT will continue to operate as its own business unit and under its current brand name. XTRACT will continue to service existing clients, representing several million dollars in committed contract backlog for 2019, along with new business opportunities as further opportunities are presented.
XTRACT has previously developed and successfully implemented solutions for military, government, industrial, environmental and transportation clients. Equally importantly, XTRACT's engineers and data scientists possess security clearance to work on government defense projects.
Patriot One also wishes to announce that Jeffery Tindale has resigned from the Board of Directors effective September 9, 2019 but will remain with the Company as Senior Vice President of Capital Markets. "On behalf of the Company, I would like to thank Jeff for his time and dedication to Patriot One's Board since inception," shared Mr. Cronin, President and Chief Executive Officer.