RDXM.05.Good News in A.M, and stock goes the other way.LOL.
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(COMTEX)B: Radix Marine, Inc. Signs Letter of Intent To Acquire The Radix
Ortega Group, Inc.
B: Radix Marine, Inc. Signs Letter of Intent To Acquire The Radix Ortega Group,
nc.
SILVERDALE, Wash., Jul 23, 2003 /PRNewswire-FirstCall via COMTEX/ -- As part of
its series of actions to reposition itself for long-term growth, Radix Marine,
Inc. (OTC Bulletin Board: RDXM.OB) (Radix Marine), a publicly-traded company
specializing in homeland defense initiatives in the marine industry, announced
today it has signed a letter of intent for partial acquisition of The Radix
Ortega Group, Inc. (Radix Ortega), a certified minority owned marine and
environmental engineering firm based in Seattle, Washington.
Under the terms of the letter of intent, Radix Marine will acquire up to 40% of
Radix Ortega. This partial acquisition will preserve Radix Ortega's status as a
certified minority business enterprise at both the Federal (under the 8(a)
program) and State levels, allowing it to continue to compete for contracts
designated under those programs.
Radix Marine believes the merger will expand the company's offerings in the
marine industry as well as its customer base. Radix Marine currently holds a
contract with the U.S. government for its unmanned surface vehicles (USVs),
which are small, remotely controlled unmanned boats that can be used for a
variety of security applications ranging from surveillance to mine detection.
Radix Ortega currently has contracts with Washington State's Department of
Transportation, the Port of Seattle, and the U.S. Navy Engineering Field
Activity Northwest, as well as ongoing environmental assessment work for marine
facility construction projects at the Naval Shipyard Puget Sound in Bremerton,
Washington. Radix Ortega also has a broad base of existing commercial customers
including the Bechtel Corporation, Bank of America and the Puget Sound Energy.
"We believe the acquisition of Radix Ortega will expand our current offerings in
the marine industry by connecting with an established company with existing
contracts for services complementary to those of Radix," said Kathy Bright,
President of Radix Marine. "In addition, we expect the acquisition to open up
new business opportunities for Radix Marine by enabling us to coordinate
resources on projects."
Beginning with a corporate restructuring and name change last May, Radix
Marine's merger with Radix Ortega is another step forward in a series of an
ongoing initiatives Radix Marine has undertaken to strategically reposition
itself within the marine industry. According to market research firm Moire
International, USVs are expected to be a $1 billion market from 2005 - 2009.
Through its subsidiary, Integrated Maritime Platforms International (IMPI),
Radix Marine is currently performing on a contract for USVs for the U.S. Navy.
Radix Marine and Radix Ortega expect the merger to be completed within 30 to 45
days. Upon completion of the merger, Radix Ortega will operate as a separate
business unit with its own rate structure. Radix Marine believes this approach
positions Radix Marine to be more competitive on service contracts, while
enabling IMPI to conduct the higher-cost research and development tasks.
Miguel Ortega, founder and owner of Radix Ortega, will remain President and
Chief Executive Officer of Radix Ortega after the merger. Ortega is a registered
geologist/hydrogeologist with over twenty-five years in the industry. Ortega, on
behalf of Radix Ortega, has managed environmental projects in the Pacific
Northwest, Alaska, California and several Midwest States for both private and
public sector clients. Ortega is actively involved with the Puget Sound Region
environmental professional community through his affiliations with several
business and community service associations. He will report to Bright.
Bright has worked with Ortega and his firm for more than ten years. The
relationship between Bright and Ortega was a significant factor in the decision
to merge with Radix Ortega. "I helped Miguel come up with the name 'Radix'
(meaning primary source) nearly ten years ago," said Bright. "When it came time
to rename Radix Marine, knowing that Radix Ortega was a potential target for
acquisition it made sense to approach Ortega about it first. His approval at
that time included an understanding that we would work towards this new
relationship," Bright added.
Additionally, Radix Marine and Radix Ortega have agreed to formalize an official
Mentor-Protege relationship, a program approved by Small Business Administration
(SBA). The Mentor-Protege program is designed to enhance the capability of
minority firms to compete more successfully for U.S. government contracts. The
Mentor-Protege program allows teams to bid on contracts that would otherwise be
restricted, as well as qualify for other forms of SBA assistance and financing
programs.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements." In some cases, you can
identify forward-looking statements by terminology such as "may," "will,"
"should," "could," "expects," "plans," "intends," "anticipates," "believes,"
"estimates," "predicts," "potential" or "continue" or the negative of such terms
and other comparable terminology. These forward-looking statements include,
without limitation, statements about our market opportunity, our strategies,
competition, expected activities and expenditures as we pursue our business
plan, and the adequacy of our available cash resources. Although we believe that
the expectations reflected in the forward-looking statements are reasonable, we
cannot guarantee future results, levels of activity, performance or
achievements. Actual results may differ materially from the predictions
discussed in these forward-looking statements. The economic environment within
which we operate could materially affect our actual results. Additional factors
that could materially affect these forward-looking statements include, among
other things, (1) general economic and business conditions; (2) the success of
our restructuring; (3) our ability to raise additional capital through the
offering of equity securities; (4) competition; (5) our ability to continue to
build strategic relationships within the marine industry, particularly within
the domestic and international high-speed USV market; (6) required accounting
changes; (7) our relationship with the U.S. Government; (8) approval of our
products by the U.S. Navy; (9) national security, including acts of domestic and
international terrorism, and (10) other factors over which we have little or no
control.
Corporate Information
Headquartered in Silverdale, Washington, Radix Marine, Inc., specializes in
homeland defense initiatives within the marine industry. The company's focus is
on opportunities with the U.S. Navy, Coast Guard, and Marine Corps, as well as
the international market, for USVs. Radix Marine's stock is publicly traded on
the Over The Counter Bulletin Board (OTCBB). For more information, please
contact Radix Marine, Inc., at 9119 Ridgetop Blvd., Suite 260, Silverdale,
Washington 98383; telephone 360-692-6446; fax 360-692-0977.
SOURCE Radix Marine, Inc.
CONTACT: media, Belinda Young of Belinda Young Public Relations,
+1-206-932-3145, or fax, +1-206-932-5169, or byoung@bypr.com
URL: mpegsupersite.com
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Copyright (C) 2003 PR Newswire. All rights reserved.
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KEYWORD: Washington
INDUSTRY KEYWORD: ARO
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