IBZT SHARES WILL BE WORTHLESS READ 10Q FILING
SPINOFF
On July 20, 2003, the Board of Directors of iBIZ Technology, Corp. ("iBIZ" or the "Compnay") approved the spin-off of iBIZ, Inc., a wholly owned subsidiary, into a separate company. Management estimates that the transaction should be completed by the second quarter in 2004
iBIZ Technology, Corp. proposes to issue without consideration non-restricted shares of common stock in iBIZ, Inc. pro rata to all its shareholders as of September 25, 2003 at the ratio of one share of iBIZ, Inc. for each 500 shares of iBIZ Technology Corp. common stock. Approximately 1.1 million shares of iBIZ, Inc. will be distributed to iBIZ Technology, Corp.'s shareholders. As of date, no shares have been issued. The purpose of the spin-off of iBIZ, Inc. is that it will allow management of each business to focus solely on that business. In addition, it should enhance access to financing by allowing the financial community to focus separately on each business. Post spin-off, iBIZ Technology Corp., will retain all of its assets and liabilities.
iBIZ Technology Corp. will continue to distribute its product line in the North and South America providing sub-licenses for all products to iBIZ, Inc. for worldwide distribution, except in North and South America. iBIZ, Inc. and iBIZ Technology Corp. are in the process of negotiating the license and distribution agreements for distribution of its products in the United States. It is currently planned that iBIZ, Inc. will support iBIZ Technology Corp. in engineering, production, and business development, through synergetic agreements (to be negotiated) using Enterprises Capital AG and its affiliates infrastructure in Europe and Israel.
After completion of the spin-off as outlined previously, iBIZ, Inc. intends to acquire the input device activities of Enterprise Capital AG in return of shares in iBIZ, Inc. This will be accomplished by the issuance by the Company of 11,200,000 shares of common stock to Enterprise Capital AG, in exchange of 100% of the input device license agreements currently owned by Enterprise.
iBIZ, Inc. will hold licenses for the spin-off operation and introduce to the Programmable Digital Assistant ("PDA") market the virtual laser light keyboard "Light Key". The Light Key is capable of projecting a full size laser keyboard on any flat surface, providing full keyboard capabilities to the PDA and hand held user in any location.
Currently the virtual keyboard license, owned by Enterprise, allows the design and development of a virtual keyboard product line, and the manufacturer and sale of that product line worldwide. The license of Light Key will provide iBIZ, Inc. the worldwide rights to manufacture and market a virtual keyboard developed by Enterprise based on licensed technology developed by VKB Inc. (with whom we have no relationship) by transferring of the license, and the developed product from Enterprise. The Light Key will be an accessory product to appliances such as PDA's, hand-held, cell-phones, laptops, etc and will provide the Company a unique product for world-wide distribution. |
