(TSX Venture Exchange: "IVI")
Issued Common Shares: 29,044,062
CALGARY, Sept. 15 /CNW/ - Ivrnet Inc. (TSX Venture: IVI), through a subsidiary, Ivrnet International Inc. ("Ivrnet International"), in which it holds an 80% interest, assisted by the Iraqi Development Corporation of Canada (the "IDCC"), have been in negotiations with the Iraqi Ministry of Communication to obtain the rights to provide wireless internet access and other networking and communications services within various geographic regions of Iraq. Senior Ivrnet executives travelled with an IDCC sponsored trade mission to Iraq earlier this year, meeting with a number of senior government officials that included the Governors of two of the country's southernmost provinces, As a result of the trade mission, Ivrnet obtained a letter of intent from the southern Province of Maysan, to provide certain specific communications services. Ivrnet also obtained a less detailed Memorandum of Understanding with the Province of Basrah. Ivrnet's Operations Manager participated in the trip to gain a better understanding of the current state of Iraq's infrastructure and to meet with representatives of the national telephone company to discuss infrastructure availability. Ivrnet is awaiting final approval from the Iraqi federal government regarding its application for the regional license that will be required to provide these services. This final decision is expected prior to the end of September 2009.
Should the license be approved, the subsidiary, Ivrnet International intends to raise initial set-up and operational funds through an equity financing of at least $5,000,000 USD, primarily from Iraqi investors (the "Financing"). These funds would be used to build an operating team dedicated to Ivrnet International, separate from the team running Ivrnet's current business. To aid in the Financing, Ivrnet International has entered into a consulting and agency agreement with the Al-Fourat Stock Exchange Company ("Al-Fourat"), an Iraqi investment corporation, for the provision of certain agency functions, as well as financial and management consulting. As consideration for acting as agent, Al-Fourat will be entitled to a cash commission of 8% of the gross proceeds of the Financing as well as warrants equal to 10% of the common shares of Ivrnet International issued pursuant to the Financing.
"We are very pleased to have a chance to be involved in the re-development of Iraq," said David Snell, President and CEO of Ivrnet. "We believe that Ivrnet's specialized expertise in connectivity solutions and communications systems, coupled with WiMAX technology, will allow us to participate in the expansion of internet access across Iraq, and to provide networking infrastructure needed to re-connect to the rest of the world. Ivrnet believes this network will also be ideal for the delivery of many of our existing services that are successfully in service in North America today."
About Ivrnet Inc. - Ivrnet is a communications company that develops and operates intelligent software applications, delivered through traditional phone networks and over the Internet. These applications facilitate automated interaction; personalized communication between people; mass communication for disseminating information to thousands of people concurrently; and personalized communication between people and automated systems. Ivrnet's applications are accessible through nearly any form of communication technology, at anytime from anywhere in North America via voice, phone, fax, email, texting and the Internet.
This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. All statements, other than statements of historical fact, are forward-looking statements. We use words such as "may", "will", "should", "endeavor", "anticipate", "plan", "expect", "intend", "believe", "estimate" and similar terminology to identify forward looking information and statements, including, without limitation, with respect to obtaining a regional license spectrum from the Iraqi Ministry of Communication and the ability for Ivrnet International to successfully complete the Financing. Such forward-looking statements are based upon assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward looking information and statements involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward looking information and statements and accordingly, readers should not place undue reliance on those statements. Risks and uncertainties that may cause actual results to vary include, but are not limited to, the fact that the license may never be granted, the limited financial resources of Ivrnet and Ivrnet International and the availability of financing alternatives; operational and technical difficulties; permits and licenses; fluctuations in currency exchange rates; changes in general economic conditions or conditions in the financial markets; risks and hazards related to the current political upheaval in Iraq, including terrorism, war, environmental hazards, government action or delays in the receipt of governmental approvals; as well as other risks and uncertainties which are more fully described in the Company's Management Information Circular, annual and quarterly Management's Discussion and Analysis and in other Company filings with securities and regulatory authorities which are available at www.sedar.com.
Readers are cautioned that the foregoing lists of risks, uncertainties and other factors are not exhaustive. The forward-looking statements contained in this news release are made as of the date hereof and Ivrnet and Ivrnet International undertake no obligation to update publicly or revise any forward-looking information or statements contained herein or in any other documents filed with Canadian and U.S. securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
SOURCE Ivrnet Inc.
For further information: For further information: please visit our website at www.ivrnet.com, or contact: David L. Snell, Ivrnet Inc., President and CEO, (403) 538-4540, eMail: email@example.com