Big City Bagels to merge with Internet cos
HICKSVILLE, N.Y., Feb 8 (Reuters) - Big City Bagels Inc., which had expressed an interest
in expanding outside the food business, said on Monday it agreed to merge with Internet service
provider VillageNet Inc. and Intelligent Computer Solutions (ICS) Inc., which designs and
operates computer networks.
Under the agreement in principal, Big City Bagels said it planned to issue about 90 percent of its outstanding common stock to
VillageNet and Intelligent Computer Solutions (ICS) shareholders assuming conversion of its preferred stock at $0.48 per share
and exercise of options and warrants at prices of $1.00 or less.
Big City Bagel shares were trading at 87.5 cents before the stock was halted on Monday. The company has about 1.4 million
shares outstanding.
VillageNet and ICS management will begin running Big City Bagels after the transaction, the company said in a statement.
VillageNet, founded in June 1995, is a community-oriented Internet service provider specializing in educational and family-based
Internet services.
ICS, founded in October 1994, is a systems-integration firm specializing in network design, implementation and maintenance and
providing Internet/intranet messaging and security products.
If a definitive agreement is executed, the transaction will be subject to approval by Big City Bagels shareholders, expected to be
held in the second quarter.
Big City Bagels, which owns and franchises delis, has been disposing of its unprofitable operations since the middle of 1998 while it
explores the acquisition or combination with other businesses.
It said last summer it was considering a strategic refocusing, including poential mergers with companies outside the food industry. |
