Chuck and SwampF0X6, this is my first discovery of the day...
PowerTel to acquire Theme Communications
SANTA BARBARA, Calif.--(BUSINESS WIRE)--Jan. 30, 1997--PowerTel USA Inc.
(NASDAQ: PTUSA) Thursday announced, its name changed to PowerTel USA Inc., from Nevada
Energy Co. Inc. (formerly NASDAQ: NNRGA) effective Jan. 3, 1997 and that a 1 for 6 reverse
split of its Class A Common shares, will become effective on Friday, Jan. 31, 1997.
A binding letter of intent was entered into whereby PowerTel would acquire various shares and
assets from Theme Publishing and Communications Group for $4.0 million in cash, common stock
and preferred shares. Revenues for Theme were approximately $10.7 million for 1996 with net
profit in the 6 percent range. The assets being purchased from the Theme stockholders include video
and CD duplication and electronic publishing services for such clients as Chase, Citibank and Bank
of America as well as a contract publishing group.
Theme said it is possible that PowerTel may negotiate a sale to current management of several
magazines which consist of in-flight, destination and food and wine publications. A PowerTel
spokesman said, "With these acquisitions, we expect a revenue increase to approximately $15.0
million during 1997, and PowerTel would become a broader based communications company." The
company expects to announce new management changes and additions to its board. Closing and
funding of the Theme transaction is expected to occur by Feb. 15, 1997.
Following the reverse split and the purchase of the Theme assets there would be approximately 4.0
million Class A shares of PowerTel traded on NASDAQ smallcap. PowerTel said its plans for
growth and consolidation in the communications arena had become more broadly aimed and that the
company expects to make further related purchases during the next 90 days.
This press release contains certain forward-looking statements and projections (including statements
concerning plans and objectives of management for future operations and services, and statements
concerning expectations) that are based on management belief as well as assumptions made by, and
information currently available to, management. The company's actual results might differ materially
from the plans envisioned, or results projected by, those statements if the company's assumptions
prove to be incorrect or for a variety of other reasons, including those relating to factors identified in
the company's Quarterly Reports on Form 10-Q and Annual Report on Forms 10-K.
CONTACT: PowerTel
Investor Relations, 805/884-8350
or
Theme Publishing & Communications
Mr. Madsen, 801/977-6115
More to follow...
Gary, who knows maybe we ought to buy more...what do you think??? |
