News,
(Applies to: FYNI)
Forestry International Will Merge its Canadian Fully Owned Subsidiary
With RMM & Associates
Today, Forestry International, Inc. (OTC Bulletin Board: FYNI) is pleased to
announce that it will merge its Canadian fully owned subsidiary with Reid,
Marcotte, Michielli & Associates, (RMM & Associates) a provider of
business-to-business solutions and services for e-Commerce. RMM & Associates has
been involved in the consulting and systems integration business and active in
the Information Technology (IT) sector for over 17 years and has established a
solid reputation, providing customers with state-of-the-art information
technology solutions.
RMM & Associates has been supporting customers from Fortune 500 companies, small
and medium-size corporations, Professional and Membership Association, and
Government Agencies. RMM expertise resides in its ability to deliver and support
adapted solutions such as Networking, Office Automation Tools and e- Commerce
solutions.
Louis R. Turp, President of Forestry International declared that, "This niche
will allow the company to participate in the impressive growth of the internet
and e-Commerce business. The Information Technology sector has propelled growth
in the telecommunications and electronic product industries. The impact of the
internet has also extended to other major industries, such as business services
and, through e-Commerce, the internet is redefining relationships among
businesses, their suppliers and their customers. Being associated with experts
and a dedicated management team with extensive industry experience such as RMM &
Associates, will give the company the ability to deliver to the market the IT
solutions it requires to be competitive in the future. The company expects to
derive much of its growth in Canada, U.S. and Europe."
Mr. Jean-Pierre Reid and Mr. Marc Michielli, Senior partners of RMM &
Associates, stated that, "Forestry International will deliver the appropriate
financial structure that RMM & Associates was seeking to accomplish their
projected growth plan. We have a clear road map on how we can capture the value
of this market where the outlook is astonishingly promising and the upside
potential almost unlimited. Being involved with a publicly traded company will
allow us to strengthen our position by using the adequate leverage in order to
produce new and powerful solutions for actual and potential customers.
Consequently, our main objective will be to deliver on a quarterly basis
attractive financial returns to enhance shareholder value. There is a large
number of attractive acquisition opportunities in the IT industry, and we will
pursue key strategic partnerships and expect the year 2000 to bring key
alliances and Canadian and U.S. acquisitions. We are presently negotiating the
acquisition of one of our business strategic partners to integrate in our
operation their highly qualified Research and Development team."
Under the terms of the merger, Forestry International will issue to RMM &
Associates shares of the Common Stock of Forestry International subject to the
provisions of Rule 144 of the Securities Act of 1933 and grant to RMM &
Associates options to purchase shares of the Common Stock of Forestry
International, exercisable in whole or in part, for a period of five years. In
exchange, Forestry International will acquire all the shares of RMM & Associates
and subsidiaries which include:
* Property and Equipment located at all offices and other locations of RMM &
Associates;
* Inventory located at the offices and other locations of RMM & Associates;
* Short and long term receivables of RMM & Associates;
* Any and all assets located anywhere that are operating assets of RMM &
Associates;
* Full ownership of RMM & Associates real estate property located at RMM &
Associates headquarters in Montreal, Canada.
Forestry International's Board of Directors, after consultation with its
financial consultants, has determined that the transaction is in the best
interest of the corporation and its shareholders. The transaction is subject to
the receipt of all consents and approvals of governmental Canadian bodies. The
proposed transaction is expected to be completed by May 9, 2000. Additional
information about the merger and proforma financial statements will be available
from time to time.
"Considering this merger based on RMM & Associates historical profitability,
expertise and additional acquisition targets in this exciting and booming
industry, there will be many interesting accomplishments to be done with our new
corporate mission," said Forestry International's CFO, Richard Jamieson. "It
provides the company a platform where we believe considerable growth
opportunities exist and the transaction will be immediately accretive to
earnings. We are confident that Forestry International and RMM & Associates can
achieve great success in the future, and merging with RMM & Associates clearly
satisfies our strict acquisition criteria."
Forestry International will pursue through its U.S. Forest Products division,
the acquisition of a U.S. Forest Products entity in order to use its tax loss
carryforwards of approximately $6.5M for the benefit of its stockholders.
Forestry International will then spin off the proceed into a distribution to the
shareholders. More information will be available when the transaction will be
completed,
For further information concerning the company, please contact:
Renmark Financial Communications
Henri Perron, President
Tel: (514) 939-3989
Fax: (514) 939-3717
Email: info@renmarkfinancial.com
Web: renmarkfinancial.com
SOURCE Forestry International, Inc.
(C) 2000 PR Newswire. All rights reserved.
-0-
CONTACT: Henri Perron, President, Renmark Financial Communications,
514-939-3989, or fax, 514-939-3717, or e-mail, info@renmarkfinancial.com, for
Forestry International, Inc.
(FYNI)
Daniel Y. |
