Here's the release:
MONTELLO RESOURCES LTD. ACQUIRES
INTEREST IN INTERNET TRACKING COMPANY.
MONTELLO Resources Ltd. (“MONTELLO”) and AVL Information Systems Ltd. (“AVLIS”) announce the formation of a
joint venture marketing corporation to sell and promote the OVT (Online Vehicle Tracking) system developed by the research
and development department of AVLIS.
The recently developed OVT system will be launched for the first time on the internet and will bring “real time” “event based”
location systems to the internet. The advantage of OVT is that it brings affordable location technology to the industrial and
consumer marketplace at a reduced cost over conventional systems. In addition to monitoring vehicle location and providing
theft deterrence, OVT can provide instant vehicle speed and engine function among other applications. OVT is also suitable for
fleet vehicle location and personal use. Contracts are already in place with Ameritech, AT&T, GTE, and Bell Atlantic to act as
CDPD providers and to act as sales agents for the products.
AVLIS will vend its entire product line into the joint venture corporation and will become the manufacturing and R&D provider
for the new corporation with a focus on affordable internet location monitoring. Montello will acquire an initial 15% interest in
the joint venture corporation for US$250,000 and an option to acquire an additional 35% interest for an additional
US$750,000.
Montello, in order to have adequate working capital, has agreed to a brokered private placement for proceeds of
Cdn$600,000. The private placement will be comprised of 2,400,000 units at $0.25 per unit. 40% of the units will be
flow-through units as to the share only, with the exercise price of the warrants for all units to be $0.30 in the first year and
$0.35 in the second year. A commission of 8.5% and 240,000 brokers warrants will be payable in connection with the private
placement.
ON BEHALF OF THE BOARD OF DIRECTORS
MONTELLO RESOURCES LTD.
Per: “Patrick Power”
PATRICK POWER, President
The Alberta Stock Exchange has neither approved nor disapproved the information contained herein. |
