David,
Greenspan tried to talk the market down for months and it became a contrary indicator. Yesterday it seemed as if he was trying to talk the market up. I sense a trend here.
ELGT's PR firm just released:
Electric & Gas Technology, Inc. Enters Telecommunication Market with Acquisition of AfriTel
DALLAS, June 11 /PRNewswire/ -- Electric & Gas Technology, Inc. (Nasdaq: ELGT) announced today it has executed an agreement for a major acquisition in the telecommunication industry. The company has agreed to acquire 100% of the outstanding shares of African Telecommunication, Inc. (AfriTel). ELGT will initially issue 4.5 million shares of common stock, subject to shareholders' approval, and a three-year program of additional stock based on certain sales milestones. Target revenues for additional stock are annual revenues of $25 million in 1999, $50 million in 2000 and $80 million in 2001.
AfriTel has represented that it has approximately $10 million in assets, with shareholders' equity of about $6.5 million and convertible debt of about $3.5 million. ELGT felt this was a better acquisition for shareholder value than the Cosmos/Gateway deal they have been pursuing. With a valuable license for installation and operation of a wireless cellular telephone system in the Democratic Republic of Congo and a wireless data license for Ghana, AfriTel provides ELGT with an immediate entry into the lucrative African market.
Qualcomm, Inc. (Nasdaq: QCOM) will supply $70 million worth of terminal units and infrastructure based on PCS/CDMA Technology. AfriTel stated that Qualcomm has signed a Letter of Intent to provide equipment financing for this contract.
Electric & Gas Technology, Inc. was formed in 1985 to serve as a holding company for operating subsidiary corporations. These subsidiaries operate in three distinct business segments: water products, natural gas equipment and electrical equipment/meter enclosures. The company is dedicated to internal growth related to its atmospheric water technology in addition to growth through acquisition.
This material was prepared by The Hawke Group, Inc. ("Hawke") for the company discussed herein based upon company-supplied information or other sources believed to be reliable. The information is not guaranteed by Hawke for accuracy or to be a11 inclusive. Forward-looking statements in this release are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties and actual results could differ from those discussed. This material is information only and is not an offer or solicitation to buy or sell the securities. Hawke, its affiliates, and/or its officers, directors and employees may from time to time have a position in these securities.
SOURCE Electric & Gas Technology, Inc.
CO: Electric & Gas Technology, Inc.; African Telecommunications, Inc.; Qualcomm Inc.
ST: Texas, Democratic Republic of Congo, Ghana
IN: TLS UTI
SU: TNM
06/11/98 13:16 EDT prnewswire.com
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