US Collaboration deal

2 Jun 2005 07:01

Pentagon Protection PLC02 June 2005 For Release 2nd June 2005 Pentagon Protection plc US collaboration Pentagon Protection plc ("Pentagon"), the provider of safety and securityproducts for commercial architectural and automotive glass, is pleased toannounce that it has entered into a letter of intent regarding an agreement withMr Haytham ElZayn, the Chairman of Allegiance Holdings LLC, a leading USautomotive warranty group, to collaborate in the introduction and development ofPentagon's products in the high potential US market. To this effect, Mr ElZayn has subscribed for 14,322,349 shares in Pentagon at3.83p per share, for a total consideration of US$1 million (£548,546). The key elements of the proposed agreement are as follows: - A new company, Allegiance Investment Company LLC (AICL), has been incorporated to act as the vehicle to market Pentagon's commercial buildings products and services throughout the United States. - Pentagon and AICL will enter into a licence agreement granting AICL the exclusive rights to trade within the USA as Pentagon's sole partner in the area of application of window films and anchoring products for architectural glass. - AICL will invest a further US$1million in the development and marketing of Pentagon's products over the next 18 months. - Mr ElZayn has been invited to accept an appointment to the main board of Pentagon. - Mr ElZayn will be granted options over 18,677,651 ordinary shares in Pentagon, representing 10 per cent. of Pentagon's enlarged issued share capital, exercisable at 4.25p per share. These options will only be granted when AICL achieves turnover of US$1,300,000 within 18 months of commencement of trading. As the grant of options referred to above requires approval of Pentagonshareholders at an Extraordinary General Meeting (EGM), Pentagon will shortlysend a circular to shareholders convening the EGM to seek such approval. Application has today been made for the admission of 14,322,349 new ordinaryshares in Pentagon to trading on AIM and admission is expected to take place on7 June 2005. Geoff Russell, Operations Director, Pentagon Protection, commented: "This is a significant step forward for the development of Pentagon's globalbusiness. The collaboration with Allegiance will permit Pentagon to tender forlarger and more extended contracts and strengthen our position worldwide. Italso opens up new market possibilities with large construction companies andleading building curtain wall designers." Ends This information is provided by RNS The company news service from the London Stock Exchange