For those who forgot
Mainchan Communications acquires Westcomm
Blond Bear Holdings Inc BB
Shares issued 3,709,999 1998-04-08 close $1.64
Wednesday Apr 8 1998
Mr Brent Mainwood reports
Blond Bear Holdings has been advised that Mainchan Communications Group has acquired all of the issued and outstanding shares of Westcomm International Sharing.
Mainchan is a switchless reseller of long distance telephone services and is the intended major transaction of Blond Bear.
Westcomm is a privately held company that is also a switchless reseller of long distance services. Westcomm's operation, based in Toronto, is national in focus. Fiscal 1997 revenue was in excess of $4 million and earnings were $750,000 pretax.
The share purchase agreement between Mainchan and Westcomm shareholders provides for a purchase price of $3,000,000 for all of the shares of Westcomm, by issuance of 3,600,000 common shares of Mainchan valued at $0.833 per share to the Westcomm shareholders, and also by way of a cash payment of $500,000.
Mainchan operated at a loss of $937,000 in its last fiscal year, in order to establish it's contracts and other arrangements. Mainchan anticipates that combination of operations will be beneficial not only due to the economies of scale inherent in the arrangement, but also due to the financial and management strengths that Westcomm brings to the potential that Mainchan has created.
The agreement also provides that the two major shareholders of Westcomm (Morgan Grandy and Paul McGrath) are to become CEO and COO of Mainchan.
Mr Grandy has 21 years of experience in the telecommunications industry. He has worked with Nortel, Dupont Canada, National Victoria Grey and the George Weston companies (11 years). His responsibilities were primarily related to planning and managing corporate communications networks.
Mr McGrath has 20 years of experience in management information services and telecommunications services. He has worked for Bell Canada, the Federal Department of Communications, Neilson Cadbury, and several other private companies. His expertise relates primarily to voice and data communication systems and to information system design and management.
Over the next few weeks, Blond Bear will be seeking the approval of appropriate regulatory bodies (including the Alberta Stock Exchange) with respect to the acquisition by Blond Bear of Mainchan, particularly in light of Mainchan's acquisition of Westcomm. If approval is obtained, the consummation of the Blond Bear/Mainchan transaction will then also be subject to approval by the shareholders of Blond Bear. |
