(COMTEX) B: (NPTK) NextPath Technologies Announces Definitive Agreeme B: (NPTK) NextPath Technologies Announces Definitive Agreement to Acquire Stake in USCertifiedLetters, L.L.C., and Technology Licensing Agreement for Global Certified Mail, Inc.
TULSA, Okla., Apr 5, 2000 (BUSINESS WIRE) -- NextPath Technologies, Inc. (OTCBB: NPTK) announced today that it has signed a definitive agreement to acquire 20 percent of USCertifiedLetters, L.L.C. ("USCL"), a privately held Birmingham, Alabama software innovations company that has developed and licensed technologies to enable postal customers to send certified mail over the Internet in the continental United States, Alaska and Hawaii.
The purchase price will consist of a combination of cash and stock, of which NextPath has advanced $2,750,000. The parties expect to complete the acquisition within the next 60 days.
Additional details regarding this acquisition will be released upon completion of the transaction. There are no assurances that this transaction will be closed within the anticipated timeframe or that it will close consistent with terms of the initial agreement.
USCL provides electronic business-to-business and business-to-consumer mail services, and has developed Internet technologies to provide new and more efficient mail processing capabilities to consumers, particularly in the area of certified mail.
USCL believes it is the first and only company to be granted approval by the USPS to provide certified mail processing services online. In 1998, the U.S. Postal Service processed 510,878,000 pieces of certified mail (according to the USPS website, www.usps.gov, and 1998 annual report). USCL expects to capture a portion of this market.
Through its proprietary web site, www.USCertifiedLetters.com, USCL believes that it will be one of the most reliable ways to send certified mail within the continental United States, Alaska and Hawaii.
William T. Carter, the principal of USCL, has also developed www.globalcertifiedpost.com (GCP) for overseas certified mail delivery. USCL recently chose IBM Global Services (NYSE: IBM) and ITC^DeltaCom (Nasdaq: ITCD) to design, manage and host both the new USCL site and the GCP site.
USCL's licensed new generation of proprietary, patent pending, information software, Automated Certified Mail, has been test marketed, is approved by the USPS and is ready to mass market. This software allows the user to create a letter (or insert one from a word processing program) at the www.USCertifiedLetters.com. site, pay on-line, and then send the letter.
The automated certified mail system verifies the address, adds the barcode, prints and folds the letter, and automatically completes the certification forms with just a few clicks of a mouse. The customer can expect a return receipt within 4 to 6 days, compared to the average of 10 to 12 days for manual processing.
In addition, NextPath announced today that it has signed an agreement to exchange a 20 percent interest in Global Certified Mail, Inc. ("GCM"), which is housing the GCP web site, for a license from William T. Carter, the principal in USCL, to use his proprietary technologies to enable global postal customers to send certified mail over the Internet outside of the continental United States, Alaska and Hawaii.
GCM is currently a wholly owned subsidiary of NextPath; the Company will maintain 80 percent ownership of GCM. Additional details regarding this agreement will be released upon completion of the transaction.
It is anticipated that the parties will close the agreement within the next 60 days. There are no assurances that this transaction will be closed within the anticipated timeframe or that it will close consistent with terms of the initial agreement.
GCM was formed by NextPath to commercialize the same proprietary electronic certified mail system for areas outside the continental United States, Alaska and Hawaii. Many businesses and organizations in other countries require verification of mail delivery to the United States, but traditional delivery methods are expensive and time consuming.
USCL is currently developing the web site to be used by GCM, where the process will be similar to that of www.USCertifiedLetters.com. However, all letters will be processed at one facility in Birmingham into a standard certified letter, making the "point of origin" for the letter a point within the United States, rather than a foreign city.
This will reduce the delivery time, speed return receipts, and reduce costs compared to the current alternatives. GCM intends initially to target multinational businesses, financial institutions and law firms in Europe.
NextPath is a development-stage holding company that engages in acquisitions, joint ventures and other strategic alliances which it believes will enable it and its subsidiaries to become significant participants in a number of rapidly expanding technology market sectors.
NextPath Technologies, Inc. is quoted on the OTC Bulletin Board as "NPTK."
Certain statements in this news release may constitute "forward looking" statements within the meaning of section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks, uncertainties, and other factors, which may cause the actual results, performance, or achievement expressed or implied by such forward-looking statements to differ.
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