OTCA has nice news,
DENVER, Feb 17, 2000 /PRNewswire via COMTEX/ -- OTC America Inc. (OTC
Bulletin Board: OTCA) a development stage company announced today that
its Board of Directors has approved a four-for-stock-split, and has
signed a letter of intent to acquire XTELEGENT WEB SOLUTIONS INC., a
regional Internet Service Provider (ISP) based in central New York
serving 11,000 subscribers.
Shareholders of record at close of business on February 29, 2000, will
automatically be treated as owning four (4) shares for every one (1)
share they own. The split will be effective February 29, 2000, OTC
America Inc., will trade on a split-adjusted basis on Wednesday March
1, 2000.
Randy Phillips, Chief Executive Officer of OTC America Inc., stated,
"To demonstrate our commitment to increasing shareholder value, we
wanted to give our stockholders an opportunity to participate in OTC
America's future growth and decided that rewarding them with a
four-for-one stock split was the best way to achieve that goal."
Mr. Phillips, also stated, "We are very excited about the acquisition
of XTELEGENT WEB SOLUTIONS INC. and our future in this industry. It is
our first acquisition of a regional Internet Service Provider (ISP) and
represents a major step toward our plan to consolidate local ISP's in
niche markets."
Financial terms of the agreement were not disclosed. OTC America Inc.,
expects the transaction to close in March, and an 8-k will be filed
with the Securities and Exchange Commission.
Commenting on the fact that key personnel of XTELEGENT WEB SOLUTIONS
INC., will join OTC America Inc., after the acquisition, Mr. Phillips
stated "With the addition of Xiaolin Zhang as Executive Vice President
and Chief Technology Officer and other personnel of XTELEGENT WEB
SOLUTIONS INC., OTC America Inc. is creating an infrastructure which
will allow it to execute its business plan of consolidating local ISP's
in niche markets." Mr. Phillips also stated, "We believe that XTELEGENT
WEB SOLUTIONS INC. will be easily integrated into out present business
mix, and we intend to acquire additional companies that meet our
business model."
"Safe Harbor" for Forward-Looking Statements: Except for historical
information contained herein, the statements in this Release are
forward-looking statements that are made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and
uncertainties, which may cause the company's actual results in the
future periods to differ materially from results expressed or implied
by forward-looking statements. These risks and uncertainties include,
among other things, product demand, market competition, the company's
ability to acquire businesses at fair prices, its ability to fund
future operations and its ability to operate at a profit.
SOURCE OTC America Inc.
(C) 2000 PR Newswire. All rights reserved.
prnewswire.com
-0-
CONTACT: OTC America Inc., 303-260-6482
(OTCA) |
