CALGARY, April 19 /CNW/ - Hodgins Auctioneers Inc. (HA:TSX.V) ("Hodgins" or the "Company") is pleased to announce the signing of an arm's length letter of intent to purchase 100% of the outstanding shares (the "Acquisition") of Bingo Management Ltd. ("BML") for an aggregate purchase price of $520,000, payable through the issuance of 6.5 million common shares in the capital of Hodgins to the shareholders of BML at a deemed issuance price of $0.08 per share.
BML is a Canadian controlled private corporation holding worldwide distribution rights for a patented internal control and management system for bingo halls. The system incorporates a point of sale and verification system with lottery-level standards of security and accountability. It also incorporates reusable laminated bingo cards providing a cost-effective and environmentally-friendly alternative to the use of disposable bingo paper and an automated bingo paper-cleaning machine.
Upon completion of the Acquisition, BML will carry on operations as a wholly-owned subsidiary of Hodgins. Barrie Jung, President of Hodgins, stated: "We are very excited to add this business services company to our existing corporate structure. We also want to welcome the professional management team of Bingo Management Ltd. that will accompany this technology. Of interest is the fact that this concept and technology originated in our home province of Saskatchewan. We have worked hard to secure the worldwide rights to it for the benefit of our shareholders and we are now ready to showcase this product to the world."
Closing of the Acquisition is expected to take place in June 2010 and is conditional upon, inter alia, the negotiation and execution of a definitive share exchange agreement, completion of satisfactory due diligence and receipt of regulatory (including TSX Venture Exchange) approvals.
Subject to TSX Venture Exchange approval, Hodgins will issue to Skye Capital Corporation Inc., an arm's length party, a total of 400,000 common shares at a deemed issuance price of $0.08 per share as consideration for consulting services rendered in connection with the Acquisition.
About Hodgins Auctioneers Inc.
Headquartered in Melfort, Saskatchewan for more than fifty years Hodgins Auctioneers Inc. is a provider of professional auction services. Hodgins is renowned for its experienced auctioneers, award winning promotions, dependable results and commitment to providing the ultimate marketplace for the sale of assets by auction.
FORWARD LOOKING STATEMENTS
This news release contains "forward-looking statements" within the meaning of applicable securities laws relating to the proposal to complete the Acquisition. Readers are cautioned to not place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risks that the parties will not proceed with the Acquisition, that the ultimate terms of the Acquisition will differ from those that currently are contemplated, and that the Acquisition will not be successfully completed for any reason (including the failure to obtain the required approvals or clearances from regulatory authorities). The statements in this press release are made as of the date of this release. Hodgins undertakes no obligation to update forward looking information, other than as required by law. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Hodgins Auctioneers Inc.
For further information: For further information: Barrie Jung, President & CEO, Hodgins Auctioneers Inc., Phone Toll Free 1-800-667-2075, Fax: (306) 752-5702, Email: firstname.lastname@example.org, Website: www.hodginsauctioneers.com