NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: DEVELCON ELECTRONICS LTD.
TSE SYMBOL: DLC
APRIL 5, 1999
Develcon Announces Amendment of Agreement with Vianet
TORONTO, ONTARIO--Develcon Electronics Ltd. today announced that
it has signed an amendment to its previous agreement dated
February 12, 1999 with Vianet Technologies, Inc. The changes to
the original agreement result from the merger of Vianet with Radar
Resources, Inc. and the resulting difference in the capitalization
of Vianet from that anticipated during the earlier negotiations
between Develcon and Vianet. The net effect of the amendment is
to ensure that existing Develcon securityholders will receive the
proportion of Vianet equity which was previously agreed.
Under the terms of the amendment:
- Develcon shareholders will receive one common share of Vianet
for every 30.75 common shares of Develcon held by them instead of
123 shares provided for in the previous agreement.
- Holders of convertible debentures will receive .195 common
shares of Vianet for each $1.00 principal amount of convertible
debentures held by them rather than .04875 shares provided for in
the previous agreement.
- Holders of warrants and options of Develcon will obtain warrants
or options to acquire Vianet shares on appropriately adjusted
terms.
- Holders of convertible debentures and holders of Develcon common
shares who receive 8,000 or more Vianet common shares, as compared
to 2,000 shares in the previous agreement, will be subject to
resale restrictions with respect to the Vianet shares received by
them.
Develcon (TSE: DLC) is a global provider of enterprise network
solutions and LAN/WAN connectivity. The Company is dedicated to
uniting business and technology by delivering innovative products,
providing world class customer service and meeting the needs of
today's advanced business environments. Telephone companies,
PTT's, Internet Service Providers, Banks, Governments and
Enterprise clients around the world have implemented Develcon's
networking solutions for core switching, edge network access and
mission critical branch office applications. On February 16th 1999
Develcon announced that it had entered into an agreement with
Vianet Technologies, Inc. of New York, NY, whereby Develcon will
merge with a subsidiary company of Vianet. Shareholder approval
for this transaction will be sought by the middle of May 1999. |
