TO ALL:
I have been trying to analyze what our latest press release, really means to GTCI. Perhaps I am not reading it correctly, and I hope if anyone has a different view of it, that he will feel free to share it with the rest of us. This is my understanding:
SAN DIEGO, Feb. 2 /PRNewswire/ -- Global Telephone Communication Inc. (OTC Bulletin Board: GTCI) today announced that it has entered into a Memorandum of Agreement to acquire 51% of Pacific Assets International Ltd. (PAI) for 600,000 restricted common shares of GTCI. The acquisition is part of a joint venture giving PAI exclusive franchise rights to market the companies Y2K software solutions including Global Fix 2000, to financial institutions and their clients throughout Asia, excluding China
To me, this means GTCI is acquiring the majority interest of PAI, for the sum of 600,000 shares of GTCI common stock. The shares will be restricted for a period of 12 months. In doing so, this will give PAI the exclusive right to market the GTCI Y2K products, to financial institutions and other clients throughout all of Asia, China not included. I'm assuming that PAI must have extensive, strong connections, with the banking industry of the region, and GTCI management apparently believes by becoming a majority partner in PAI, this will guarantee that they become the provider of the Y2K solutions to all of PAI's client base. The exception of China, is due to previously announced and ongoing negotiations and contractual arrangements, under a separate agreement with that country. Another completely different contract in itself.
PAI, a Asian-based consulting firm, is in the business of setting up major Internet and information technology business relationships for bankers worldwide. Included will be a search engine, information mall and business library, said Terry Wong, President of Global. Global will assist PAI in its development of strategic relationships with the Asian banking community as PAI wants to establish its search engine to be a major financial Internet portal for facilitation of trade and commerce in Asia, Wong added.
Now this part has me somewhat confused. The way I read this, PAI is in the business of establishing a internet based, financial information web site, including a search engine, information mall, and business library to serve the needs, as well as link together, perhaps exclusively, the existing clients of PAI, as well as other banking institutions around the world. GTCI apparently feels it can, through its existing contacts, expand the scope of operations currently available to PAI. Perhaps through its established contacts in the country of China???
Principals of PAI have extensive contacts and strong ties with the Asia Pacific banking community, according to Wong, including the Association of Development Financing Institutions in Asia and the Pacific, which encompasses 78 development banks in 33 countries with members and clients exceeding eight million. Additional contacts include the Asian Bankers Association (ABA) and other banking associations in the region. The same principals of PAI annually organize the Asia Pacific Bankers Congress, the Asian Banking Awards and the Asian Banking Digest.
I believe this is self explanatory. Clearly, the principals of PAI, now our partners, are the banking industries "heads of state", so to speak. I take this to mean that they are the ones who give direction to the Asian banking community. When they speak, everyone listens. The region's current, and future economic growth, can be, and is, determined by the direction taken by the development banks. Such a banking conglomerate, in return, can open additional doors of opportunity for GTCI.
Global Telephone Communication Inc., is working with China Telecom to bring wide access of the Internet to the Peoples Republic of China. Through its wholly owned subsidiary Regent Luck Holdings, Global Telephone operates under an exclusive agency/licensing agreement with China Telecom's wholly owned subsidiary, Newsnet, to provide basic and advanced Internet services. Also within the agreement is Global Telephone's ability to provide Internet Telephony systems and products. According to statistics recently released by the China National Network Information Center, registered Internet users reached 1.175 million by the end of June, 1998, doubling the number of users over the previous six month period. More information can be obtained about Global by visiting its Web Site at globaltci.com.
I get the impression that since GTCI felt it was relevant to add this paragraph to the news release, that somehow, GTCI, being partnered with the Chinese Government owned China Telecom, is planning on utilizing their services in China, to aid PAI in establishing its financial network. Of course, since GTCI has a 51% ownership stake in PAI, what benefits PAI, benefits GTCI as well.
In summary, I think its fair to say that through the PAI agreement, GTCI should end up being the supplier of the Y2K programs, for the majority of PAI's clients. This in itself, should represent a multi-million dollar deal for GTCI and its shareholders. In addition, through PAI's contacts, new doors will open up to GTCI, that have not been available before, with unlimited revenue potential through its Y2K products, and its Internet Service. It appears to me that this news release, while subtly disclosing that a Y2K deal is in the works with PAI, is also setting the stage for additional news down the road.
All of this is just my opinion of course, and I ask anyone with a different viewpoint, to please share it with the rest of us. A well informed investor, is usually a successful investor. Let's work together on this, for the good of all.
Highest regards,
Blessed
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