Symphony Telecom's Update to Shareholders
New Developments on Mondetta Telecommunications Negotiations
TORONTO--(BUSINESS WIRE)--Aug. 30, 2000--Symphony Telecom International Inc. (OTCBB:SYMY - news ) announced today that it would like to provide shareholders and interested parties, a basic corporate overview and update of recent developments. Other significant announcements are pending.
Mondetta Telecommunications Inc. Developments
Symphony recently announced the signing a Letter of Intent to acquire the customer base of Mondetta Telecommunications Inc., a privately held Canadian long distance service provider. Negotiations have expanded, and as a result, now focus on the acquisition of the entire Company, which includes additional assets, such as telecom equipment. Initially, the principal asset being acquired was the customer base which represents an annualized net operating revenue stream of approximately $5 Million (US), $7.2 Million (CDN). This acquisition is expected to close in the near future.
Directory Management America Share Purchase
Symphony has entered into an agreement with Directory Management America to purchase new treasury shares of DMA which will result in Symphony Telecom holding 51% of the issued and outstanding stock of DMA. This company is a marketing communications company which provides advertising services, specifically yellow pages and e-commerce support for businesses. Symphony's investment of $500,000 (CDN), will provide seed capital to DMA. Although it is in the startup phase, the Company has already secured contracts valued in excess of $6 Million (CDN). Symphony and DMA foresee excellent synergies and cross-marketing opportunities in the complimentary nature of their product lines.
Symphony Corporate Business Developments
Symphony, since early this year, has grown from 11 employees to almost 40 presently. The Company recently acquired LinkData Communications Inc., which brings additional strength in the data field and adding $2 million CDN ($1.4 million USD) in revenues, and growing quickly. The Company is presently in negotiations with six potential merger/acquisition candidates, each of which, if completed, should greatly enhance the revenue, profit, and marketing strength of the Company.
In August of this year, Symphony entered an agreement to occupy a leased 20,000 sq. ft. building in Brampton, Ontario. This building will be the new headquarters for the Company. The majority of the staff currently located at 347 Bay Street, Toronto will be moving to the new location in October. In addition to housing Symphony's headquarters staff, the building will also house a New Network Data Center which the Company is planning as part of its Applications Services Provider thrust.
In its on-going efforts to develop a world-class direct sales staff, Symphony entered into an agreement in August of this year, with Lamon, Stuart, Michaels, a Toronto recruiting firm, to recruit an additional 39 experienced business to business telecom sales professionals. The company has set aside an initial capital budget in excess of $1 million to recruit, train and equip its direct sales force.
Other Recent Developments
Symphony also filed an 8K with the SEC, concerning details of its $100 Million Dollar non-exclusive equity funding commitment, obtained on a best efforts basis. The transaction was arranged by Geek Securities, Inc. ( www.geeksecurities.com <http://www.geeksecurities.com> ), a registered NASD Broker/Dealer. These funds can be utilized by Symphony on an ``as needed'' basis.
Gilles A. Trahan, Chairman, CEO of the Company stated, ``Symphony has been approached by a number of companies and has entered into negotiations with Broker Dealers and Institutions regarding additional financing. If negotiations prove successful, we expect to make additional announcements in the short term.''
About Symphony Telecom International Inc.
Symphony Telecom International, Inc. is a business to business broadband telecom solutions provider dedicated to delivering all the benefits of the Next-Generation Global Network to its valued customers. Symphony Telecom International has positioned itself to become North America's first international Next-Generation Telco, leveraging emerging technologies into a coherent, sophisticated, and user friendly array of services utilizing the increasingly global and high speed Internet that continues to evolve in quality and expand in size.
Website: symphony.net
Information in this press release contains ``forward-looking statements.'' These statements involve risks and uncertainties that could cause actual results to differ materially. There is no assurance the above-described events will be completed. There can be no assurance of the ability of the company to achieve sales goals, obtain contracts or financing, consummate acquisitions or achieve profitability in the future. The above and additional factors are discussed in detail in the company's filings with the SEC.
For More Information Contact:
Gilles A. Trahan
Chairman, C.E.O.
Email: gtrahan@symphony.net <mailto:gtrahan@symphony.net>
Symphony Telecom International Inc.
``The Sound Choice in Communications''
Phone: 888-479-6746 / 416-366-5221
Fax 416 366-2245
Visit our website at: www.symphony.net <http://www.symphony.net> |
