Here is the Article.
I am hearing that they are going to do the financing at higher prices.
Wednesday, November 03, 1999
Jaws to take advantage of
window of opportunity for
acquisitions
Encryption technology
Carol Howes
Financial Post
CALGARY - Jaws Technology Inc., a fledgling company that has developed the strongest computer encryption technology on the market, is planning a series of acquisitions within weeks.
Jaws said yesterday it has bought Pace Systems Group Inc., a small private Toronto-based firm, that provides security services to the financial industry.
Jaws is also poised to announce the acquisition of a Calgary-based publicly traded technology company tomorrow and has signed a letter of intent to buy a New York-based company that offers computer forensic services. That deal is likely to close within a week or two.
"We see that we have a window of opportunity to capture market share in an industry which has exponential growth opportunities," said Robert Kubbernus, chief executive.
Jaws, which went public last year, has drawn much attention for its impenetrable encryption technology.
Last year the Calgary-based company offered $5-million to anyone who could break the code of its software. More than 600 hackers tried and failed.
The company has also developed a low-cost, simplified software, called XMail, that protects e-mail messages against unauthorized access.
It is developing an upgraded version that includes a file shredder, which removes any trace of files from a hard drive.
Mr. Kubbernus said Jaws is eyeing primarily the financial, medical, education, government and law enforcement sectors and is pursuing deals to penetrate those markets.
He said most of the acquisitions will be done through the issue of shares, although Jaws will go to the markets this fall to raise $25-million (US) in Canada and the United States.
To acquire Pace, Jaws will issue up to 1.7-million shares at $1.70 each. In return, Pace will bring more than $2-million (US) in annual revenue.
As part of the company's strategy to move abroad, Jaws is negotiating an agreement to take a 25% interest in Hong Kong-based Cobra Tech Inc., which will sell Jaws' products in Hong Kong, Singapore and Australia. Mr. Kubbernus is also headed to the United Kingdom next week to pursue another acquisition, he added.
"We have successfully made our name in the security software business," said Mr. Kubbernus. "We plan to extend our business model by going to the next level as more than a software-products company." |
