YARC Secures Funding for Merger and Acquisition
Program
CAMARILLO, Calif.--(BUSINESS WIRE)--Dec. 5, 1999--YARC Systems Corporation (OTC
BB: YARC) today announced that it has closed a financing which will provide a ten million dollar
($10,000,000) credit facility to expand YARC's merger and acquisition activities.
The funding is non-dilutive, being in the form of an interest-only loan.
It is expected that all funds will be in-hand by December 23, 1999.
"The printing industry is undergoing significant consolidation," commented Dr Trevor Marshall,
YARC's Chairman and CEO. "This funding will enable YARC to aggressively achieve critical mass in
those technologies which will be essential to the printshop of the future. The printing industry is fast
becoming geographically diverse, reliant on the Internet not just for file transmission, but also for
training and customer support. Over the last three years YARC has been developing LINUX
solutions for Internet based printing, and we are currently the only color server manufacturer which
can provide complete remote technical assistance and problem diagnosis over the Internet." (also see
press release dated 11 Jan 1999 at yarc.com )
YARC's LINUX Color server on the Internet is at yarcxp.com.
Part of the funding will be used to grow YARC's first acquisition, Quality Photographic Imaging, who
specialize in the emerging market for spectacular 3-Dimensional versions of the signage used at the
Point Of Sale (POS) in retail environments such as Restaurants, Vending Machines, and Department
Stores. The total size of the market for POS signage in 1998 was 13.7 Billion dollars. The 3-D
formats are currently a small, but growing, fraction of that market.
The remainder of the funding will be used to complete other acquisitions YARC has identified within
the printing industry. Emphasis is being placed on targets with good revenue flows and
Internet-related growth potential. Special attention is being paid to those companies where YARC's
technologies can be used to improve profitability.
About YARC ( yarc.com
YARC has developed proprietary LINUX software that integrates Printing technologies with the
Internet and Internet Browsers. YARC's proprietary version of Adobe Systems' "PostScript" Printer
Description Language (PDL) is used to transfer images from a computer, over a network such as the
Internet, to a printing engine. Any computer image, whether it comes from a digital camera, a
scanner, or a professional paste-up, can be printed onto paper using YARC's RIPs for desktop
printers, color copiers, or the wide format printers that make POS display signage.
Through its Quality Photographic Imaging division, YARC will pioneer a new generation of
3-Dimensional Point Of Sale (POS) signage used in high traffic environments such as airports,
theaters and casinos.
YARC's E-Commerce Server is at secureshop.yarcrip.com.
YARC/QPI's 3-D POS showcase is 3-dsigns.com.
At this date YARC Systems has 20,448,021 shares of common stock issued and outstanding,
23,327,087 million on a fully diluted basis. The number of shares in the public float is just over 12
million. YARC Officers and Management own 34% of the issued and outstanding common stock.
The above totals include the shares being used to acquire Quality Photographic Imaging. There have
been delays in the filing of this merger with the State of California brought about by incorrect
processing of the 1987 merger that created QPI.
DISCLAIMERS:
Forward Looking Statements: Certain of the above statements may be forward looking statements
that involve risks and uncertainties. In such instances, actual results could differ materially as a result
of a variety of factors, including competitive developments, lack of adequate financing, and other risk
factors listed from time to time in the Company's disclosure statements and/or SEC reports. Such
statements are protected under the Safe Harbor provisions of the securities regulations. Specific Risk
Factors: No guarantees can be given that the above described funding will be consummated as
contracted. YARC has performed reasonable due diligence to determine the existence and utility of
the securities underlying this transaction, but no guarantees can be made that such due diligence has
uncovered all possible problems. This transaction has been in negotiation for 5 months prior to its
confirmation and close. No guarantee can be given that further delays will not occur, whether or not
due to circumstances within YARC's control. All trademarks are the property of their respective
owners.
Contact:
YARC
Philippe Niemetz, 800/477-7570 (Investor Relations)
or 212/344-6464
wphconsultants@msn.com
Press Relations, 800/800-YARC
press@yarc.com |
