Points North is firm that is partially owned by Leisure Canada (LCAN:CDN) and is a techonogy solution company for travel agencies
pointsnorth.com
POINTS SIGNS DEFINITIVE AGREEMENT FOR U.S. ACQUISITION
TORONTO, Sept. 10 /CNW/ - Trading CDN: PNTS
CUSIP NO. 730907102
Issued & Outstanding as on July 31, 1998: 7,039,525
In March of this year, Points North Digital Technologies, Inc. (''Points
North'') announced its signing of a letter of Intent to proceed with the
acquisition of the assets of International Tours Inc., IT Cruises and Galaxsea
Cruises (collectively ''International Tours''), subject to completion of its
due diligence. The original terms called for a US$3.5 million purchase price
consisting of US$1 million in cash and US$2.5 million in Points North shares.
The parties are pleased to announce that they have entered into a
definitive purchase agreement with the following terms and conditions:
Purchase price has been set at US$2.75 million - an all cash deal.
Closing has been set for October 15th with payment of US$1.75 million to the
vendors at time of closing, and US$1 million hold-back to be deposited in
trust for a one year period.
The parties have developed a minimum revenue guarantee program along with
incentives to encourage strong performance. International Tours principals
have agreed to guarantee revenues of US$1.2 million for the 12 month period
following closing. Any shortfall of the revenue guarantee below the US$1.2
million mark will result in an offset of trust funds at a rate of $2.3 for
each $1 in shortfall. Conversely, any revenues in excess of the US$1.2 million
will be split 50/50 between Points North and the principals of International
Tours. The revenue guarantee incentive program will last for one year
following the closing of the acquisition.
The Purchase of International Tours begins a major U.S. expansion for
Points North. When combined with Points North's TravelPlus retail travel
agencies, the group will move to one of the top 5 travel agency consortiums in
North America. The acquisition will also allow TravelPlus to take advantage of
the significant cruising opportunities through the introduction of Galaxsea
Cruises to its Canadian consortium.
Points North plans to introduce its technology network solution called
''Online4travel'' into International Tours offices in 1999. This system
combines Java and Lotus Notes technologies that will offer comprehensive
Internet/Extranet services to both its member agencies and the public. IBM
picked the Company's Internet solution as one of 8 key solutions out of 7,600
companies and is demonstrating the solution on a 20-city North American
roadshow.
Also of significant note, the Company recently announced on August 19,
1998 a key business alliance with Sun Microsystems, the original developers of
Java technology. The agreement will see the deployment of 100 Sun
Microsystems servers along with technical support for future solution
enhancements, e-commerce technologies, expanded links to central reservation
systems and the introduction of Points North to Sun Microsystems Canadian and
US investment travel and corporate markets.
Points North co-CEO, Glen Kerby stated that ''the acquisition of
International Tours, when combined with our technology will begin to create
real synergies. Bringing our strategic partnerships, relationships and travel
and transport experience together with Sun's product line and aggressive
business acumen gives us a significant technical lead in a rapidly growing
marketplace.''
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For further information: Investor Relations, Kinghaven Securities Ltd.,
(416) 581-8850, Ext. 226; Bill Quine, Points North Digital Technologies, Inc.,
(306) 934-3319, Ext. 26; or visit our website at www.pointsnorth.com |
