SINGAPORE--(Marketwired - March 14, 2017) - Zecotek Photonics Inc. (TSX VENTURE: ZMS) (FRANKFURT: W1I) (OTC PINK: ZMSPF), a developer of leading-edge photonics technologies for healthcare, industrial and scientific markets, is pleased to announce that the financing for an equity stake for its wholly owned subsidiary, Zecotek Imaging Systems Pte Ltd. (Imaging Systems), as previously announced on October 20, 2016, has been scaled up to $15 million. The Company also announces a concurrent $10 million financing for an equity stake in its wholly owned subsidiary Zecotek Display Systems Pte Ltd. (Display Systems). The increase in the Imaging Systems financing is due to an improved valuation of the wholly owned subsidiary and the growing demand for Zecotek's patented LFS scintillation crystals by the Chinese PET OEM industry. The Display Systems financing is to raise the necessary funds to complete the integration of its patented 3D display monitor for automotive applications. Both divisional financings will be conducted on a best efforts basis.

"Recent events in China's medical scanning markets and the interest in our 3D Display technology for automobile applications have given us a unique opportunity to raise funds at the divisional level to build out two distinct and self-sustaining business units," said Dr. A.F. Zerrouk, Chairman, President, and CEO of Zecotek Photonics Inc. "China is experiencing a renaissance in medical imaging where three factors are converging to create the ideal environment for our imaging technologies: the government is encouraging the development of homegrown medical scanners, local OEMs have acquired the necessary technology and management to develop leading edge medical technology, and new PET medical scanners which require our components, are coming on the market. With respect to our 3D display technology, recent developments with the automotive industry have attracted investment groups interested in a potential strategic equity position in our Display Systems division. We avoid significant dilution to our shareholders by completing the two financings at the higher valued divisional level, and we look forward to creating two businesses which will operate autonomously and will have their own corporate and management structures."

The funds raised for the Imaging Systems division will be used to add crystal growing capacity to its laboratory and crystal cutting facility in Singapore. The Shanghai EBO Crystals Assembly Company is the largest crystal array producer and supplier in China, and has committed to use only Zecotek's LFS scintillation crystals in their crystal arrays for PET medical scanner. As previously announced on January 25, 2017, EBO ordered over USD21 million worth of scintillation crystals to be delivered over the next three years. This exclusive agreement will make Zecotek the main supplier of lutetium silicate based scintillation crystals to EBO. In order to ensure a consistent and high quality supply of crystals, additional crystal growing capacity is necessary. A valuation of the Imaging Systems division was completed by a reputable North American investment bank, which resulted in a value of approximately $80 million.

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