Gemcom Aquires Assets and Ongoing Business Activities of Lynx Do Brasil
VANCOUVER, BRITISH COLUMBIA--Gemcom Software International Inc., a
leading software supplier for the earth resources industry, today
announced it has reached an agreement to purchase the assets and
ongoing business activities of Lynx do Brasil, a competing
organization. A new majority-owned company, Gemcom do Brasil, will
be formed to operate as a new sales and support office for Gemcom
products. The Company anticipates this move will increase revenues
by $300,000 in the first year and by $1 million five years out.
"With the formation of this new company, Gemcom will have the
largest installed base of exploration and mining software in
Brazil," says Gemcom President and CEO Peter Franklin. "Having the
largest market share will position us well for growth in the
region. It will also enable Gemcom to immediately increase sales
in Brazil, which currently has a vibrant and expanding mining
industry."
Bek Nader, former majority owner of Lynx do Brasil, will be the
general manager of the new company. Nader joined Lynx Geosystems
Inc. as a consultant in 1989 and established Lynx do Brasil in
1992. Under his stewardship, Lynx do Brasil sold 100 seats of its
software product, MicroLynx, earning it 45 per cent of the
Brazilian market. Lynx do Brasil's client list includes well known
companies such as RTZ/CRA, CVRD and HOLDERCIM.
Under the agreement, all six existing Lynx do Brasil staff will
join the new Gemcom office. Current Brazilian Lynx customers will
continue to receive service and support for their existing
software. An interface to allow seamless movement from Lynx to
Gemcom products is slated to go into development in the near
future.
Gemcom develops, markets, sells and supports Windows 95/NT
software for the mineral exploration and mining industry. Its
products are used for manipulation of drillhole sample data, ore
body modelling, and mine design and planning. Gemcom has over 1700
software installations with more than 700 companies in over 60
countries. Gemcom is a Vancouver-based Company with offices in
eastern Canada, the USA, England, Peru, Australia, Chile and
Brasil. Currently trading on The Toronto Stock Exchange, Gemcom
has approximately 9.7 million shares outstanding.
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