Acquisition Marks Powerstar's Entry into the Hot Spot Market
VANCOUVER and CALGARY, April 26 /CNW/ - Ignition Point Technologies Corp.
(TSX-VEN:IPN) (Ignition Point) and Powerstar International Inc. (TSX-VEN:
PWS.P) (Powerstar) are pleased to announce that they have entered into an
agreement whereby Powerstar is to acquire Ignition Point's subsidiary FatPort
Corporation for an amount estimated to be $1,180,000. The purchase price is
payable in cash and is subject to adjustment based on confirmation of the
gross revenue of FatPort for the six months ended March 31, 2007. The
transaction will be implemented by way of a plan of arrangement. Completion of
the transaction is subject to customary closing conditions, including receipt
of court and TSX Venture Exchange approval.
"Powerstar is excited about this acquisition since it catapults us into
the explosive growth of the Wi-Fi Hot Spot market," said Dr. Hatim Zaghloul,
CEO and Chairman of Powerstar, "We plan to strengthen the existing strategic
relationships and forge large scale relationships with worldwide advertising
marketplace to provide contextual messaging which should generate significant
revenue and enhance customer experience.
"Ignition Point is pleased to pass Fatport onto the capable and ambitious
team at Powerstar", said Peter van der Gracht, CEO of Ignition Point. "We plan
now to devote all our energies to growing our TeraSpan business."
About Ignition Point
Ignition Point Technologies Corp. (TSX-VEN:IPN), a Vancouver-based
broadband technology company, provides unique access and applications
solutions to wired and wireless network service providers. Ignition Point
subsidiaries include TeraSpan Networks Inc. www.teraspan.com and FatPort
Corporation www.fatport.com. For more information, visit www.ignitionpoint.ca.
About Powerstar International Inc.
Powerstar International Inc. was a Capital Pool Corporation that has
completed its qualifying transaction by the acquisition of Solutrea Inc. and
Solutrea Canada Inc. Solutrea is in the business of providing value added
services in the broadband communications market.
This release may contain certain forward-looking statements reflecting
Ignition Point Technologies' current expectations in the broadband
communications market. Investors are cautioned that all forward-looking
statements involve risks and uncertainties, including, without limitation,
changes in market and competition, technological developments and potential
downturns in economic conditions generally. Additional information on these
and other potential factors that could affect the company's financial results
are detailed in documents filed from time to time with the British Columbia
Securities Commission. The TSX Venture Exchange does not accept responsibility
for the adequacy or accuracy of this news release.
For further information:
For further information: Stephen Majlath, Chief Financial Officer,
Ignition Point Technologies Corp., Phone: (604) 633-9090; Hatim Zaghloul, CEO
and Chairman, Powerstar International Inc., Phone (403) 285-0223