FEVI -- .17 x .1775 News...
December 04, 2000 09:43
FEVI's Board of Directors Approves a $10 Million Purchase Price for Intended Acquisition
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MIAMI--(BUSINESS WIRE)--Dec. 4, 2000--Far East Ventures, Inc. (OTCBB:FEVI), today announced that at its board of directors meeting held on November 27, 2000, the board approved a total acquisition price of $10 million for the previously announced acquisition which was recently reviewed by the company's auditors. The $10 million figure would be reached through a combination of cash, stock, and earned out subordinate notes, which ties a portion of the purchase price to the revenues and profits of the acquisition to be generated in the future.
According to Michael S. Fletcher, Chairman of the Board of Far East Ventures, "Based upon a review by our auditors, and as evidenced by the company's historical annual gross revenues of $25,000,000 and net profits of approximately $2,500,000, our board of directors has approved an offer of $10 million for 100% of the shares of the outstanding stock of the acquisition candidate under consideration. Management of both companies agreed that it can be anticipated that the acquisition will add a minimum of $0.10 per share to FEVI's earnings for 2001, without additional consideration of the cost savings from the combination of the two companies. We are extremely pleased with these figures and Far East Ventures is hopeful of completing negotiations with the acquisition and entering into a definitive agreement on or before December 15, 2000. Based on this time frame, the closing should occur during the early first quarter of 2001. At the time of execution of the definitive acquisition agreement, the acquisition candidate will be released from its confidentiality agreement and names of the parties and final terms of the acquisition can be made public."
Far East Ventures' subsidiary, Sophisticated Communications, Inc., has been an innovator in the prepaid calling card business since 1995, and is now one of the industry's leaders in sales and distribution. The company specializes in providing private label cards for master distributors, and will soon move from being a switchless re-seller to a facilities based provider. Because of senior management's extensive experience in telecommunications, the company provides a well blended product mix with competitive international rates and a wide variety of calling cards, which benefits its network of distributors and end users in maximizing market potential. FEVI management is dedicated to increasing its shareholder value as it expands its business plan. On November 3, 2000, the company established its web presence, as part of its efforts to raise its corporate profile. This move into e-commerce will take SCI into a new arena, adding internet sales and business to business trade to its well diversified product and marketing mix.
The Private Securities Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this Press Release (as well as information included in oral statements or other written statements made or to be made) contains statements that are forward looking, such as those relating to consummation of transactions, anticipated future revenues and/or success of current product offerings. Such forward looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward looking statements.
For further information, contact Lynne Perlmutter of The Consilium at 800-376-2030, or through the company web site at sciphonecards.com.
CONTACT: The Consilium, Miami
Lynne Perlmutter, 800/376-2030 |
