NVXE up sharply on news of one merger completed, another planned-one cancelled. Their acquired company actually does sound kind of interesting...
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Thursday February 17, 10:55 am Eastern Time
SOURCE: New Visual Entertainment, Inc.
New Visual Entertainment, Inc. and New Wheel Technology, Inc. Complete Merger; Company to Develop High Speed Broadband Transmission Technology
SAN DIEGO, Feb. 17 /PRNewswire/ -- New Visual Entertainment, Inc. (OTC Bulletin Board: NVXE - news) announced today that it has completed the acquisition of New Wheel Technology, Inc., a privately held company based in Pleasanton, California (``New Wheel'). New Wheel was merged with the Company's Astounding Acquisition Corp. subsidiary, which will operate under the New Wheel name. In consideration of the merger, the stockholders of New Wheel will receive 2,000,000 restricted shares of New Visual common stock. An additional 10,000,000 restricted shares of common stock have been delivered to an escrow agent and will be released to the New Wheel stockholders upon the achievement by New Wheel of a technological development milestone. Additional compensation would be paid to the New Wheel stockholders if New Wheel's high speed digital transmission technology generates revenues for the company in excess of $1 billion, or if there is a sale of assets or stock, or a merger of New Visual or any of its affiliates in which the New Wheel technology comprises at least 15% of the consideration. Initial financing to fund the development of the technology has been facilitated by Lilly Beter Capital Group.
New Wheel is developing high-speed digital transmission technology for a variety of applications. The Company announced that it has begun development efforts on a new high-speed broadband local telephone loop transmission technology that could provide access up to 133 times faster than typical DSL service. The technology, when applied to 51 Mbps VDSL, will provide extended range, which can be deployed to a majority of telephone customers. This new high-speed capability could provide both Internet access and cable TV-like services. Higher transmission speeds, such as LAN and ATM rates, are also under development. New Wheel intends to provide technology licenses to interested parties and to release its own branded products.
Ray Willenberg, Jr., President of New Visual, states, ``We are delighted to finalize this merger and to announce that Allan Blevins and Michael Shepperd, the founders of New Wheel, have agreed to continue working with New Visual to develop this innovative transmission technology. Now we can finally get to the fun part of developing and proving this exciting technology, which will ultimately help us to deliver (at unprecedented speeds), a variety of content for consumer and Business to Business applications.'
Mr. Blevins and Mr. Shepperd will serve as New Wheel's President and Vice President respectively. Mr. Blevins and Mr. Shepperd also will each serve as Vice Presidents of New Visual. Mr. Blevins said, ``Joining New Visual will enable us to speed development of our technology, while strengthening its potential to supply content to multiple markets. Mike and I are excited to be a part of the New Visual team.' Mr. Shepperd added, ``I'm pleased to be continuing our development work with New Visual. There should be some great opportunities to combine the technologies we are developing with the 3D content and web animation of New Visual.'
New Visual also announced the termination of its previously announced merger agreement with Astounding.com, Inc. Mr. Willenberg explained that certain conditions to the merger, originally announced in September 1999, had not been satisfied, and that the New Visual Board of Directors thus unanimously voted this month to pursue the opportunity with New Wheel.
New Visual Entertainment, Inc. is a true stereoscopic 3D production company that specializes in 3D product development and distribution for special venue theaters, home video, broadcast and theatrical markets by utilizing patented technology for the creation and exhibition of 3-dimensional media. Its stock is traded on the Nasdaq stock market's over-the-counter bulletin board under the symbol NVXE. Lilly Beter Capital Group, Ltd., with offices in Washington, DC, New York, California, Florida, Minnesota, Illinois, Gibraltar, Turks and Caicos Islands, and the British West Indies, is providing investor and public relations services for the Company and can be reached at 561-361-1030. |
