Alpha Virtual, Inc. Enters Into Binding Letter of Intent To Acquire EssTec, Inc.
LOS ANGELES, Apr 2, 2003 (BUSINESS WIRE) -- Alpha Virtual, Inc. (OTCBB:AVUL) today announced that it has entered into a binding Letter of Intent to acquire EssTec, Inc. The transaction will be structured as a stock-for-stock exchange; there are 4,276,162 shares of EssTec issued and outstanding as of the date hereof, along with outstanding options and warrants to purchase an additional 1,660,979 shares of common stock. The closing of the transaction is subject to certain conditions, including, but not limited to, negotiations of a definitive agreement and plan of merger, completion of "due diligence" investigations, receipt of all necessary approvals, and compliance with all applicable laws and corporate governance procedures. It is expected that the acquisition will close prior to June 30, 2003.
"We feel that this acquisition will bring substantial value to Alpha Virtual and create a new and exciting application for our OneView technology. Through the acquisition of EssTec, we will go from being a research and development company to a product-driven company," stated Charles Lesser, acting President of Alpha Virtual.
Mr. Lesser continued on to say, "We think that EssTec's architectural solution for workflow management as it has been deployed in the medical industry is a synergistic fit with our Company and provides opportunities for future product offerings in the medical industry and elsewhere."
Faysal Al Zarooni, Chairman of the Board of EssTec, Inc., said, "We are very pleased to have entered into this agreement with Alpha Virtual. We feel that there are synergies between the companies and we think that this merger will be beneficial to both companies' shareholders." |
