Dexit announces name change to Hosted Data Transaction Solutions Inc. (HDX), Closing of the Acquisition of Quick Service Restaurant Division, Private Placement and Conversion of Special Warrants



    TORONTO, Aug. 7 /CNW/ - Dexit Inc. (TSX: DXT) (the "Company") is pleased
to announce its name change to Hosted Data Transaction Solutions Inc. (HDX),
the closing of the acquisition of the Quick Service Restaurant Division of
Howell Data Systems Inc., the completion of a $5.43 million private placement,
and conversion of the Special Warrants issued in conjunction with the private
placement.

    Name Change

    On July 31 at the annual and special meeting of shareholders,
shareholders approved a name change for the Company from Dexit to "Hosted Data
Transaction Solutions Inc." (HDX). The Company plans to file its articles of
amendment today to effect the name change. The Company will begin trading
under the ticker symbol (TSX: HDX) on or about August 10, 2007. The Company's
name change is to better reflect the wide range of payment, loyalty, and
business intelligence services to be offered by the Company.

    Acquisition of QSR Division of Howell Data Systems Inc.

    On August 3, 2007 the Company completed the acquisition transaction (the
"Acquisition") to acquire the Quick Service Restaurant division ("QSR") of
Howell Data Systems Inc. ("HDS"). The purchase price was an aggregate of $8 
million, subject to certain post-closing adjustments, consisting of $4 million
in cash and $4 million in common shares of Dexit, at a price of $0.88 per
Common Share for a total of 4,545,454 Common Shares (the "Consideration
Shares"). A meeting of Dexit shareholders was held on July 31, 2007 where
Dexit obtained the required approval of the Acquisition by the minority
shareholders of Dexit. QSR will continue to operate as Howell Data Systems
QSR.

    Private Placement

    The Company is also pleased to announce that prior to the closing of the
Acquisition, it closed the second tranche of a previously announced private
placement (the "Private Placement"), by issuing a total of 1,762,500 special
warrants (the "Special Warrants") at a price of $0.80 per Special Warrant for
an aggregate of $1.41 million. A total of 6,787,500 special warrants ("Special
Warrants") for an aggregate of $5.43 million (the "Private Placement
Proceeds") was raised between the first and second tranches of the Private
Placement. The required minority shareholder approval of the Private Placement
was obtained at the shareholders' meeting.
    A finder's fee of 5% was paid to certain registrants including National
Bank Financial Ltd. in connection with the closing of the second tranche of
the Private Placement.
    Securities issued in the second tranche of the Private Placement are
subject to a four month and a day hold period expiring December 4, 2007.

    Conversion of Special Warrants and Release of Escrowed Proceeds

    Upon the completion of the Acquisition, each Special Warrant was
automatically converted on August 3, 2007, without payment of additional
consideration, to one Class A common share and one half of a warrant (a
"Warrant") of the Company. Each share issued has a hold period which expires
four months from the date of issuance of the Special Warrants. Each whole
Warrant entitles the holder to purchase one additional Class A common share of
the Company (a "Warrant Share") at a price of $1.25, until the date that is
the 24 months following the conversion date of the Special Warrants (the
"Warrant Expiry Time"). In the event that after the date that is four months
and one day following the closing of the Private Placement the closing price
of the common shares on the TSX is greater than $1.75 per common share for a
period of 20 consecutive trading days, the Company may elect to accelerate the
Warrant Expiry Time to the date which is the 10th day after the day on which
the Company gives notice to the holders of the Warrants informing them of the
acceleration of the Warrant Expiry Time. A total of 6,787,500 Class A common
shares and 3,393,750 Warrants were issued upon the conversion of the Special
Warrants.
    The net proceeds from the sale of Special Warrants were released to the
Company on August 3, 2007 following the completion of the Acquisition.

    About the Company

    Hosted Data Transaction Solutions Inc. (HDX) is in the business of
managing merchant transactions with consumers and facilitating payment. The
Company develops and deploys touch screen POS system software and associated
enterprise management tools and has developed and deployed numerous POS
applications. The Company also provides system hardware integration services,
merchant staff training, system installation services, and post sale software
and hardware support services.
    Leading edge technology also includes customer self serve kiosks and
"line buster" mobile point of sale terminals. These products have been
designed to dramatically enhance customer throughput and drastically reduce
customer queues. These technologies are especially effective in high foot
traffic environments that have limited cash register counter space, limited
retail square footage, and the absence of a drive through.
    The Company has pioneered an "instead of cash" (R) electronic based
payment facilitation service. The Dexit(R) Service can be private branded for
a specific merchant and enables customers to pay for items quickly and
conveniently with the tap of a RFID (radio frequency identification) tag
linked to a pre-paid account. The Dexit payment solution is especially well
suited for corporate and institutional cafeteria environments where hundreds
of customers purchase and pay for meals in compressed periods throughout the
business day.
    To find out more about Hosted Data Transaction Solutions Inc. (HDX),
visit our website at www.dexit.com.





For further information:

For further information: Paul Howell, President/CEO, Hosted Data
Transaction Solutions Inc. (HDX), (416) 703-6462, extension 263

Organization Profile

HOSTED DATA TRANSACTION SOLUTIONS INC.

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