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by Stockwatch Business Reporter
The TSX Venture Exchange gained 3.16 points to 741.91 Thursday. Hari Varshney's sixth capital pool shell, Steamsand Capital Corp. (SAND: halted), plans to acquire Voti Inc., also known as Voti Detection Inc., for the shell's qualifying transaction. Voti is a Montreal company that makes X-ray screening machines, like the ones used to scan luggage at airports. To acquire Voti, Steamsand will roll back 1 for 18, leaving it with 338,888 shares issued, then issue 19,166,667 shares to Voti's shareholders. For its part, Voti plans to sell a $10-million to $15-million private placement at $3 to raise money for the resulting issuer.
Voti offers half a dozen versions of its X-ray scanners, including a mobile version that is meant to be installed in a van or a truck (for security roadblocks). Voti sells its products in 45 countries. Its customers include the Canada Border Services Agency, the U.S. Air Force, the United Nations High Commissioner for Refugees, Indonesian prisons, the Ankara Metro (the rapid transit system in Turkey's capital), Amazon (for its warehouses) and Tiffany & Co. Voti's chief executive officer, Rory Olson, told Montreal newspaper La Presse that in 2015 the company sold 40 machines and had revenue of $1.7-million. Then in 2017 it sold 600 machines and had revenue of $18.4-million. Mr. Olson said he expects Voti to be profitable this year, which leaves the impression that it was not profitable last year (and that there may be some doubt about this year's profit as well).
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