Technovision agrees to acquire a BC-based ISP
Technovision Systems Inc TVS
Shares issued 9,837,188 May 18 close $1.50
Wed 19 May 99 News Release
Mr. Gordon Tremain reports:
Technovision Systems has agreed to acquire a British Columbia-based Internet service provider with approximately 5,000 dial-up customers. This acquisition, which is subject to due diligence and regulatory approval, is expected, based on recent revenue figures, to provide positive cash flow exceeding the purchase price in less than one year.
Technovision has recently launched an aggressive acquisition strategy, with a goal to grow to 50,000 customers by calendar year-end. This latest acquisition moves Technovision's subscriber count to about 31,000 from a January start of 20,000.
"We've really hit critical mass now," said Gordon Tremain, president and chief executive officer. "The bulk of the cash flow from these acquisitions drops to the bottom line and enables us to finance additional acquisitions." The most recently reported quarter shows the company's cash flow is approximately 16 cents per share on an annualized basis. This strong and growing cash flow, combined with close attention to operating
costs and a recently completed $800,000 private placement, provides Technovision with financial strength to execute its aggressive acquisition strategy. |
