ADCM - SIMMONDS - INTEK - NEXUS-SYNERGY?
Both equities - IDCC & ADCM - were up significantly today -- Thursday, January 29, 1998. And, since these two stocks and their key players all have an incestual relationship, I thought I would post ADCM's Press Release today ....
MEADOWS
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PRESS RELEASE:
American Digital Communications Completes Acquisition of Trackpower
DENVER--Jan. 29, 1998--American Digital Communications, Inc. (OTC Bulletin Board:ADCM) and Simmonds Capital Limited ("SCL") announced that the transaction involving ADCM's acquisition of the intellectual property rights and all assets of TrackPower and its associated operations, closed today.
The terms of the transaction call for ADCM to issue to SCL $1,000,000 face-value in the form of a convertible Preferred Stock, convertible into 1,000,000 ADCM common shares. Additionally, ADCM will issue to SCL warrants to purchase 500,000 ADCM common shares at an exercise price of $2.00. Once ADCM's retained earnings position becomes positive and not before, SCL will receive an amount equal to 10 percent of ADCM's annual EBITDA with the payout capped at a total of $1,500,000.
Upon closing, John G. Simmonds became ADCM's Chairman and Chief Executive Officer, while Gene Klawetter continues with ADCM as Vice-Chairman. Mr. Simmonds stated, "ADCM is the perfect vehicle to launch TrackPower throughout North America, and eventually the world. With TrackPower, ADCM has acquired a focused and successful business as well as a very talented management team."
TrackPower currently operates a digital Multi-Point Multi-Channel Distribution System (MMDS) providing four channels of live horse racing to subscribers in Toronto, Ontario, Canada. This spring TrackPower plans to launch a satellite service with a footprint covering all of North America. The new service will utilize the latest in interactive television technology to incorporate data and wagering with live horse racing.
Simmonds Capital Limited, Toronto, Ontario is involved in the wireless communications business as a systems integrator and in the electronics business as a manufacturer and distributor of electronic components and related products. SCL is listed on the Toronto Stock Exchange (Symbol - SMM).
This release contains forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties.
CONTACT:
Simmonds Capital Limited
A. Graham Simmonds, 905/837-9909
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