HALIFAX, Sept. 6 /CNW/ - SolutionInc Technologies Limited (SolutionInc)
(TSX-VEN: STL), developer of award-winning Internet connectivity, billing and
management software and services announced today that it has entered into a
Letter of Intent to purchase all of the issued and outstanding shares of
Line 4 Communications Inc. from Armshore Investments Limited, and 51% of the
issued and outstanding shares of Pelatis BPO Solutions Inc. from Pelatis BPO
Limited (the "Share Purchase").
Halifax-based Line 4 Communications Inc. designs, provisions, installs
and manages integrated communications applications for small and medium sized
companies, distributed enterprises and contact centers. The acquisition of
Line 4 Communications Inc. will broaden SolutionInc's product portfolio to
include IP telephony systems and increase potential recurring revenue streams.
SolutionInc's Share Purchase of Pelatis BPO Solutions Inc., a business
process outsourcing service provider operating in Canada and the Philippines
will allow SolutionInc to maintain more service offerings within its own
organization, reducing its third-party outsourcing costs and increasing profit
"This is an extremely significant development for SolutionInc, and one
that will have a positive impact on current and future partners and customers.
The Purchase of Line 4 Communications Inc. and Pelatis BPO Solutions Inc. will
expand our capacity, improve efficiencies and allow us to offer customers a
wider range of solutions as part of our core business," says SolutionInc
President and CEO Glen Lavigne. "Additionally this transaction will increase
our capacity in many critical areas of our business and introduce the company
to new markets while at the same time reducing our cost of doing business. As
SolutionInc's worldwide customer base and footprint continues to expand, the
addition of the operations center in Manila, Philippines will play an
essential role in helping us meet customer demands. Organizations today are
looking for that 'one-stop shop' for their technology requirements; this
opportunity moves us closer to that model."
"SolutionInc is entering a very exciting period. Line 4 Communications
Inc. and Pelatis BPO Solutions Inc. enhance SolutionInc's product offering,
providing a more compelling and service-oriented solution with greater revenue
potential from both existing and new customers. I am very pleased and excited
to be now working with SolutionInc on these and other opportunities in the
future," adds Stephen Lockyer, President of Armshore Investments Limited and
Director of Pelatis BPO Limited.
As consideration for all of the issued and outstanding shares of Line 4
Communications Inc., SolutionInc will issue 12,000,000 common shares and
5,000,000 warrants to purchase common shares of SolutionInc for a two year
period at an exercise price 1.4 times the average closing price of SolutionInc
on the three trading days prior to the closing date of the Share Purchase and
assume long-term debt not to exceed $450,000.
As consideration for the 51% of the issued and outstanding shares of
Pelatis BPO Solutions Inc., SolutionInc will issue 10,000,000 common shares.
SolutionInc will have the option to purchase the remaining 49% of the issued
and outstanding shares of Pelatis BPO Solutions Inc. within 24 months of the
closing of the Share Purchase.
The Share Purchase is conditional on the parties entering into a
definitive Agreement of Purchase and Sale for the shares of Line 4
Communications Inc. and Pelatis BPO Solutions Inc. The closing date for the
Share Purchase is November 1, 2007. The Share Purchase is subject to
regulatory and TSX Venture Exchange approval. There is no finder's fee to be
paid pursuant to the Share Purchase.
About SolutionInc Limited
SolutionInc Limited (SolutionInc) simplifies Internet connectivity.
SolutionInc's software system allows people with laptops to easily and
securely connect to the Internet from a hotel room, a convention center, or
any type of Wi-Fi hotspot. The system allows the property or broadband
provider to register users, to bill for service and show the user targeted
messages. The company provides software and services to the hospitality and
telecommunications industries. SolutionInc is recognized as one of the leaders
of Internet connectivity and hotspot management.
SolutionInc Limited is a trademark and a wholly owned subsidiary of
SolutionInc Technologies Limited (TSX-VEN:STL). All other trademarks are the
property of their respective holders. For more information visit
SolutionInc Disclaimer: Statements about the Company's future plans and
intentions, results, levels of activity, performance, goals or achievements or
other future events constitute forward-looking statements. Wherever possible,
words such as "may," "will," "should," "could," "expect," "plan," "intend,"
"anticipate," "believe," "estimate," "predict," or "potential" or the negative
or other variations of these words, or other similar words or phrases, have
been used to identify these forward-looking statements. These statements
reflect Management's current beliefs and are based on information currently
available to Management. Forward-looking statements involve significant risk,
uncertainties and assumptions. Many factors could cause actual results,
performance or achievements to differ materially from the results discussed or
implied in the forward-looking statements. These factors should be considered
carefully and readers should not place undue reliance on the forward-looking
statements. Although the forward-looking statements contained in this press
release are based upon what Management believes to be reasonable assumptions,
the Company cannot assure readers that actual results will be consistent with
these forward-looking statements. These forward-looking statements are made as
of the date of this press release, and the Company assumes no obligation to
update or revise them to reflect new events or circumstances. Many factors
could cause the actual results, performance or achievements of the Company to
be materially different from any future results, performance or achievements
that may be expressed or implied by such forward-looking statements,
including: general economic and market segment conditions, competitor
activity, product capability and acceptance, international risk, currency
exchange rates, and technology changes. More detailed assessment of the risks
that could cause actual results to materially differ from current expectations
is contained in the Risk Assessment section of the Management Discussion and
Analysis for the three months and six months ended March 31, 2007.
For further information:
For further information: Christy Wentzell, Marketing Manager,
SolutionInc Limited, (902) 422-0043, email@example.com