Valdor Signs Letter of Intent for Mexican Joint Venture
August 25, 2014 – Vancouver, B.C.Valdor Technology International Inc. (“Valdor”) (TSX: VTI-V) (OTC: VTIFF) is pleased to report that a Letter of Intent for a joint venture partnership has been signed with Inteligencia e Infraestructura En America S. A. (“Inteligencia”). Inteligencia, located in Mexico City, markets, services and installs electrical equipment and fibre optic cable, to the telecommunications industry, throughout Mexico.
The objective of this proposed joint venture is for Valdor to become a leader in the Mexican fibre optic technology market and in telecommunications customer acquisition. The imminent deregulation of Mexico’s telecommunication industry will be a catalyst for this process. The Mexican telecommunications market is $35 billion/year and growing. (Please see the study by the “Cooperation Organization for Economic Development” on the Mexican telecommunications industry & Mexican Government website “Instituto Federal de Telecomunicaciones”.) (www.ift.org.mx) Fibre-to-the-home deployment in Mexico is at a very early stage.
It is proposed that Valdor will provide quality control practices and procedures, component procurement, operational procedures, technical transfer and training. It is proposed that Inteligencia will provide the engineering and assembly employees, sales and marketing employees, executive leadership, and the physical facilities in Mexico.
Valdor and Inteligencia will each provide 50% of the investment capital and share equally in the profits. To satisfy the Mexican requirement for local content, the joint venture will ultimately, but not immediately, establish a manufacturing facility within Mexico. The joint venture will initially supply and ultimately manufacture passive optical components including a full range of optical connectors, assemblies, patch panels and integrated optical solutions. Mr. Toledo has tendered his resignation as a Valdor Director; this will allow him more flexibility in securing business opportunities for Valdor throughout Latin America. The joint venture partnership will be structured to provide triple play (voice, data & multi-media) solutions for the FTTx and streaming video market sectors; the content focus will be health care, security and education.
Valdor has received a third set of comments from the US Securities and Exchange Commission (SEC) relative to listing on the OTCQB securities market (please see news release dated March 26, 2014). Valdor plans to respond to these comments during the week of August 25, 2014.