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A Reverse Merger, backdoor'n IPO?
Here we go...Lets Imagine one!
Advatex Associates, Inc. Signs Merger Agreement
NEW YORK--(BUSINESS WIRE)--May 25, 2000--Advatex Associates, Inc. (NASDAQ OTCBB: ADTX - news) today announced that, on May 16, 2000, it and two of its wholly-owned subsidiaries entered into a Merger Agreement and Plan of Reorganization with two privately-held corporations, Logical Imaging Solutions, Inc., a California corporation, and Color Image, Inc., a Georgia corporation. As part of these mergers, Advatex is seeking stockholder approval to complete a reverse stock split of .164534 of a share for each of the 5,470,000 shares currently outstanding, leaving approximately 900,000 shares outstanding prior to the mergers. Advatex then intends to issue, upon closing the mergers, an aggregate of 6,000,000 shares of its common stock to the current shareholders of Logical and Color.
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Color Image, since 1987, has developed and manufactured products used in electronic printing, including a full line of toners for printers produced by Brothers, Canon, HP, IBM, Lexmark, Sharp and IBM. Production and support are provided from a new state-of-the-art, 300,000 square foot manufacturing plant and corporate headquarters, employing over $10 million of capital equipment, located outside Atlanta, Georgia.
Logical Imaging, founded in 1993, has been committed to the development of a digital high-speed color printing system. The DIGITALCOLORPRESS, fully integrated with design, productivity, manufacturing and connectivity software, and the fastest commercial toner-based printing process, permits true Print-On-Demand capabilities. This revolutionary printing system has been designed to replace both offset presses and data processing printers in their combined $8 billion annual equipment market.
Advatex has called for a meeting of its shareholders to take place on June 19, 2000 to approve the reverse stock split and a change of the company's name to ``Color Imaging, Inc.,'' all effective upon completion of the mergers. The consummation of the mergers is subject to a number of conditions, including a 30-day ``due diligence'' period for Advatex to review financial and legal matters relating to the two companies. (Othe statements omitted...)
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