This is not a rec to buy....NEWS (ADRN)
Adrenalin Interactive has Signed Letter of Intent to Acquire McGlen Micro, Inc., an E-Commerce Company
Business Wire - March 12, 1999 09:42
LOS ANGELES, Calif.--(BUSINESS WIRE)--March 12, 1999--Adrenalin Interactive Inc. (NASDAQ: ADRN) announced today that it has signed a Letter of Intent to acquire McGlen Micro, Inc. a Southern California based E-Commerce company in a stock for stock transaction. The shareholders of McGlen Micro would own a substantial majority of the shares of the combined company.
The Letter of Intent is subject to a number of conditions including completion of a definitive agreement and satisfactory due diligence. Either party may cancel this Letter of Intent upon 10 days written notice. There can be no assurance that this proposed acquisition will take place.
McGlen Micro, which was founded 3 years ago, offers over 40,000 computer and related products through its online store, www.mcglen.com. Revenue for McGlen Micro, in the 12 months ended December 31, 1998, including a smaller company acquired since the first of this year, was $16.5 million with a small profit, on an unaudited basis. McGlen Micro's competitors include other E-Commerce companies such as Cyberian Outpost (NASDAQ:COOL), Beyond.com (NASDAQ: BYND) and Onsale Inc. (NASDAQ:ONSL).
Jay Smith, CEO of Adrenalin, said, "The Letter of Intent represents a significant step in the efforts by Adrenalin to develop Internet related activities and to grow through acquisition. The combination of Internet Entertainment and Internet Commerce is a powerful attraction for a large number of users and it assures our current customers that we will have the resources to satisfy their future needs. We are excited by the prospect of acquiring McGlen Micro, which, while still in the early stages of corporate development, in our view, is a strong and profitable competitor in the E-Commerce distribution channel of computer related products."
The President of McGlen Micro, George Lee, said, "McGlen Micro is proud of its rapid growth as a profitable company. We believe that through the combination of Adrenalin's and McGlen Micro's talents and technologies, the combined company will expand our goals and deliver cost effective and quality service to a large and diverse range of customers."
Adrenalin Interactive Inc. develops and licenses console video games for Sony, Nintendo and Sega consoles, entertainment titles for personal computers, and Internet "play-to-win-cash" games for the World Wide Web. Adrenalin also develops and licenses electronic toys, particularly interactive, Web-powered toys that are refreshed from a PC via the Internet. Adrenalin creates interactive television games for digital set-top boxes and publishes or licenses certain PC games in 24 countries and 15 languages.
McGlen Micro is a private company that provides E-Commerce services and products for a wide range of computer related categories. McGlen Micro has a unique consumer interface and software technology that is popular with mass-market consumers. In February 1999, McGlen Micro acquired a similar company, Access Micro Inc., dba AMT Component, Inc. The offices are located in Tustin, CA.
The statements set forth above with respect to the proposed acquisition, the benefits thereof and the potential growth of the combined company are forward looking statements within the meaning of that term in the Private Securities Litigation Reform Act of 1995. As such, they are inherently uncertain and should not be unduly relied upon. As to the consummation of the proposed acquisition, uncertainties include the ability of the parties to negotiate definitive agreements, completion of satisfactory due diligence by both parties, the receipt of approval by Adrenalin's shareholders, the satisfaction of other conditions to closing and other uncertainties normally associated with the consummation of business acquisitions. As to the hoped for benefits of the acquisition and potential future growth, uncertainties include the ability to successfully integrate the companies' businesses, technologies and management, the availability of sufficient capital to expand the businesses, customer acceptance on new products, competition and other uncertainties associated with integrating businesses after acquisitions and growth.
CONTACT: Adrenalin Interactive Inc.
Jay Smith, CEO
310/821-7880, 310/821-4251 fax
e-mail: jsmith@adrenalin.com
adrenalin.com
or
Wolfe Axelrod Associates
Stephen D. Axelrod, CFA
Nancy S. L. Block
Susan T. Bolen (Media)
212/370-4500, 212/370-4505 fax
e-mail: steve@wolfeaxelrod.com
Headlines Next Story
|
