ivyNET Corporation acquires balance of shares of ivyNET, Inc. to hold 100%
TORONTO, May 18 /CNW/ - ivyNET Corporation (the ''Company'') is pleased
to announce that on May 14, 1999 it has completed a share exchange agreement
dated April 19, 1999 with 1330691 Ontario Inc. and 1220692 Ontario Inc. and
1330693 Ontario Inc. (collectively the ''Vendors'') whereby the Company has
acquired the remaining 50% of the issued and outstanding common shares of
ivyNET, Inc. (''ivyNET'') for a purchase price of $1,800,000 payable in shares
of the Company. 1330691 Ontario Inc. is owned by Christopher Sohn, a director
of the Company and ivyNET, Inc. 1330692 Ontario Inc. is owned by Stephen J.
Paquette, a shareholder holding more than 10% of the common shares of the
Company and a director of the Company.
The purchase price was satisfied by the allotment and issuance to the
Vendors of securities of the Company consisting of 4,500,000 common shares of
the Company. The purchase price paid by the Company is the same as the Company
paid for its initial 50% interest in ivyNET, Inc., on December 23, 1998. The
Company now owns 100% of the outstanding common shares of ivyNET, Inc.
The transaction was negotiated and approved by an independent committee
of the Board of Directors of the Company.
ivyNET is a telecommunications solutions provider offering international
long distance termination services to both existing PTT carriers and NextGen
telcos, leveraging deregulation and liberalisation in foreign markets. ivyNET
enables these carriers to leverage the Internet Protocol (IP) to capture
significant cost savings in the short term and value-added applications and
services in the long term. ivyNET offers OEM IP Telephone technology to System
Integrators and VAR's, targeting enterprise and vertical niche markets.
Applications featuring the convergence of voice and data are built on ivyNET's
IP Telephony hardware and software.
ivyNET owns 51% of the shares of SL Electronics Co Inc. of Korea
(''SL''). SL is a leading supplier of IP Telephony technology in the Asian
market. Their carrier class gateway will be used as the core technology
component to ivyNET's Global Carrier Services offering. SL is also a leader in
the development of IP Telephony technology based on Microsoft's Windows NT
platform. SL's focus on Windows NT development is the foundation of ivyNET's
Enterprise strategy.
ivyNET Corporation, Inc. has 16,498,722 and 18,277,138 common shares
issued and outstanding on a basic and fully diluted basis respectively. The
Company trades on the Canadian Dealing Network under the symbol ''IVYN''.
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For further information: Mr. Michael Nikiforuk, Executive Vice-President
and Director at (416) 362-3966
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