Buzz Telecommunications announces purchase and sale of 59% of its outstanding shares
MONTREAL, Aug. 30, 2013 /CNW Telbec/ - Buzz Telecommunications Services Inc. (TSXV: BZZ.H) announces that Mazen Haddad, Jeremy Edelman and John McMullen today acquired an aggregate of 15,833,495 common shares of Buzz Telecommunications from Palos Merchant Fund, L.P., representing approximately 59.4% of Buzz Telecommunications' issued and outstanding shares. It is the intention of Messrs. Haddad, Edelman and McMullen to reactivate the company, although no specific plans have been formulated at this time.
Each of Mazen Haddad and Jeremy Edelman purchased 6,956,495 shares from Palos Merchant Fund, while John McMullen purchased 1,920,505 shares from Palos. The three purchasers paid an aggregate of $117,667 to Palos Merchant Fund for the 15,833,495 shares, representing a purchase price of $0.007 per share. Buzz Telecommunications did not realize any proceeds from the sale of shares by Palos Merchant Fund. Following the closing of the transaction, Buzz Telecommunications understands that Palos Merchant Fund does not hold any of its shares.
In light of the purchase price when compared to the market price of Buzz Telecommunications' shares, the purchases by each of Messrs. Haddad and Edelman of approximately 26.1% of Buzz Telecommunications' outstanding shares is an "exempt take-over bid" under applicable securities laws, and the two purchasers are not required to make the same offer to Buzz Telecommunications' other shareholders. The purchase by Mr. McMullen of approximately 7.2% of Buzz Telecommunications' outstanding shares is not subject to take-over bid rules.
Buzz Telecommunications also announces that in connection with the closing of the transaction, Cameron McDonald has resigned from the Board of Directors, and Douglas McMullen and Guy Charette have been appointed to the Board. The Board of Directors of Buzz Telecommunications is now comprised of Mazen Haddad, Rafi Hazan, Douglas McMullen and Guy Charette.
In addition, Mazen Haddad has been appointed as Chairman of the Board, President and Chief Executive Officer of Buzz Telecommunications, while Rafi Hazan, formerly President and Chief Executive Officer, has been appointed as Chief Financial Officer, following the resignation of Raymond Houle, C.A. Buzz Telecommunications thanks Cameron McDonald and Raymond Houle for their valued contribution to the company.
Buzz Telecommunications' shares are listed on the NEX board of the TSX Venture Exchange.
This news release contains statements that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking information and statements may include, among others, statements regarding the future plans, costs, objectives or performance of Buzz Telecommunications Services Inc. ("Buzz"), or the assumptions underlying any of the foregoing. In this news release, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits Buzz will derive. Forward-looking statements and information are based on information available at the time and/or management's good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond Buzz's control. Buzz does not intend, nor does Buzz undertake any obligation, to update or revise any forward-looking information or statements contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.
SOURCE Buzz Telecommunications Services Inc.For further information:
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