NextPath Technologies Buys Stake in United Paper
HILLSBOROUGH, N.C.--(BUSINESS WIRE)--Aug. 18, 1999--NextPath Technologies, Inc. (OTCBB:NPTK - news) announced today that it has acquired 20.9% of United Paper, Inc. of Dallas, Texas.
For a direct investment of $1 million, NextPath received preferred stock that also pays an annual dividend of 12%. In addition, James R. Ladd, NextPath President, has joined the United Paper Board of Directors.
United Paper recently acquired The Paper Group of Chicago and G. B. Goldman of Philadelphia, both US subsidiaries of the Bunzl Corporation of Great Britain. As a result of these acquisitions, United Paper has become a primary independent paper distributor selling to newspapers, publishers, printers and catalog houses.
The revenues of United Paper will exceed $150 million annually. The acquisitions are the first phase of United Paper's strategy to develop a national presence in the marketplace.
According to E. Andrew Harvey, Chairman and President of United Paper, ``We are excited about NextPath's involvement with United Paper. NextPath's expertise in the 'Green Sector' will help us to identify environmentally sound approaches to improving our products, expanding our markets, and enhancing our profitability.'
Both NextPath and United Paper are clients of International Profit Associates (IPA) Advisory & Intermediary Services, who represented United Paper in structuring the acquisition of the Bunzl subsidiaries, including securing NextPath's involvement.
Doug McClain, Senior Executive of Advisory & Intermediary Services, noted, ``NextPath and United Paper are two of the most dynamic and rapidly growing companies among our more than 70,000 clients worldwide. We are excited about the synergies possible from NextPath's involvement in United Paper, which we believe will greatly enhance the profitability of both companies.'
Jim Ladd, President of NextPath, added, ``This is the first of many transactions to close with organizational and financial support from IPA and Valentine Strategic Investments Limited. Our company is committed to the application of environmentally and financially sound approaches to improving the paper industry, and we welcome involvement with a progressive company like United Paper.'
NextPath Technologies, Inc. is a holding company that has acquisitions and strategic alliances pending that will allow the company to become a significant participant in a number of rapidly expanding technology market sectors.
The company has agreements to acquire Sagebrush Technology, Inc., Willow Systems, Ltd., Laser Wireless, Inc., and NextWave Photonics, LLC. NextPath is currently in the final stages of negotiations with several Internet and E-Commerce companies.
It is anticipated that the corporate strategies currently being pursued by NextPath will result in geometric increases in the profitability of the respective companies joining NextPath.
Certain statements in this news release may constitute ``forward looking' statements within the meaning of section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks, uncertainties, and other factors which may cause the actual results, performance, or achievement expressed or implied by such forward-looking statements to differ.
NextPath Technologies, Inc. is Quoted on the OTC Bulletin Board as ``NPTK'.
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NextPath Technologies, Inc.
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