Conac Software Corp - News Release
Conac to acquire B2B Highway
Conac Software Corp COT
Shares issued 33,246,793 2000-10-16 close $0.33
Monday Oct 16 2000 News Release
Ms. Jacqueline Michael reports
Conac Software has signed a memorandum of understanding with B2B Highway Inc., a private California-based company. Under the terms of the MOU, Conac intends to purchase 100 per cent of the assets and shares of B2B. The parties are presently negotiating the terms of the acquisition and a letter of intent is expected to be finalized within three weeks. Any future acquisition will be subject to the policies of the Canadian Venture Exchange. Based on discussions to date, Conac does not believe that the final terms of the proposed acquisition will constitute a change of business under the policies of the Canadian Venture Exchange.
As part of its possible acquisition of B2B, Conac has engaged I Capital Corp. (a California investment banking firm) to assist Conac with its due diligence review, and to provide advice on the terms and the financing of the acquisition. I Capital Corp. will be paid a fee of $100,000 (U.S.) for its services.
Under the MOU, B2B will refrain from entering into any business discussions with other third parties for a period of 90 days for which Conac will advance B2B the sum of $40,000 (U.S.) against future efforts for Web enabling the Conac suite of products to application service provider (ASP) technology. In addition, B2B will grant Conac the right to market its Web-enabled ASP "prelim" application, for which Conac will realize a 40-per-cent profit from any such sales.
B2B operates out of Venice, Calif., and provides information technology services to corporate clients who are moving into the e-business arena. B2B is a provider of enterprise level Internet applications with a strong track record in the business-to-business field.
B2B has developed a core engine that is readily adaptable to any industry, enabling a faster delivery to market time and a substantial cost savings over similar products currently available. B2B has expertise in all Internet technologies, including emerging technologies such as XML, which is quickly becoming the industry standard for interfacing between disparate systems. The core engine forms only a portion of B2B's software library. B2B currently has products in the business-to-business software application sector for the transportation, construction and insurance industries.
The management of Conac believes that B2B is an extremely attractive acquisition target based on the ability of the two companies to leverage off each other in the areas of infrastructure, marketing and technology. B2B has successfully developed a much sought-after global technology that can be adapted to any type of industry needing to create an ASP exchange or portal for its products or services. Conac believes that B2B's current and future technologies represent the future direction of business-to-business and will greatly enhance Conac's existing suite of software products.
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