NEWS:
NEWS RELEASE TRANSMITTED BY CCN - A NEWSWIRE SERVICE OF ITG
FOR: CHASE RESOURCE CORPORATION
TSE SYMBOL: CQS
JULY 24, 2000
Chase Resource Corporation: Proposed Takeover Of 1293551
Ontario Inc. - (A Designer, Distributor And Integrator Of
Digital Media Infrastructure Systems)
VANCOUVER, BRITISH COLUMBIA--Mr. Ian Rozier, President and CEO, is
pleased to announce that Chase Resource Corporation ("CRC") has
entered into a non-binding Letter of Intent (the "agreement") to
acquire all of the issued and outstanding share capital of 1293551
Ontario Inc. ("129"), a company that designs and installs
technology for the digital media infrastructure industry.
The 129 group of companies includes 100% owned subsidiaries Acura
Technology Group, Inc., Summit FX Inc., Digital Images, Inc. and
Commercial Video Systems, Inc. The 129 group designs, distributes
and integrates full service solutions for baseband/broadband
technologies that include broadcast, post production, cable,
telecom, multimedia, internet and video streaming.
The acquisition of 129 will be by way of a share exchange whereby
CRC will purchase all of the issued and outstanding shares of 129
in exchange for the issuance to the shareholders of 129 of that
number of CRC common shares so that the CRC security holders and
debt holders will hold 11% on a fully diluted basis of the CRC
common shares subsequent to closing. One of the conditions of the
transaction is that on or prior to closing, 129 will have
completed a private placement financing in an amount as required
by The Toronto Stock Exchange to meet minimum listing
requirements.
The proposed transaction will be structured as an exempt share
exchange take-over bid. CRC will hold an Annual General and
Extraordinary Meeting at which time shareholders of CRC will
consider the Acquisition. Upon closing 129 will be entitled to
nominate the board of directors of CRC. The Acquisition of 129 by
CRC will be subject to the negotiation and execution of a
definitive acquisition agreement between CRC and the shareholders
of 129 and the approval of The Toronto Stock Exchange ("TSE"), the
Canadian Venture Exchange ("CDNX") and CRC shareholders.
There is a number of conditions that must be satisfied by CRC
before the parties enter into the definitive acquisition agreement
which is expected to occur on or about August 15, 2000. However,
there can be no assurances that such conditions will be met and
the agreement entered into. In addition, CRC is currently under
review by the TSE concerning its continued listing.
129 is a designer, distributor and integrator of Digital Media
Infrastructure Systems that provide the backbone of Video and
Digital Media in several key industries. 129 focuses on four core
areas of sustainable business and growth; Broadcast and
Production, Baseband and Wireless, Internet and Streaming Media,
and Corporate Communications Systems. Since its inception in
1988, 129 has been a market leader in Canada and the U.S. for
sophisticated systems for Internet Streaming Video, Broadcast
Television, Cable, Satellite Transmission, Post Production,
Teleconferencing, Educational Television Systems, and Digital Film
Systems. 129's business partners include world class leading
technology companies such as Sony, Panasonic, Tektronix, Philips,
Media 100, Pinnacle, Leith and the Grass Valley Group. 129's
customers include major broadcasting, telecom and cable companies
including the Canadian Broadcasting Company, Time Warner, CTV
Network, ABC, CBS, FOX, NBC and PBS affiliates, Lee Enterprises,
Chronicle Broadcasting and Bell Canada. Corporate clients include
Fortune 100 companies such as American Express, Carlson Marketing
Group, Motorola and AMD. The company has expertise that is
valuable in the broadcast industry's migration from analog to
digital, and the US FCC mandated transition to DTV (Digital
Television) and HDTV (High Definition Television).
129's headquarters are located in Toronto, Canada. The company
has offices in Toronto, Calgary, Vancouver, Montreal, Minneapolis,
Kansas City and Austin. In fiscal year 1999 sales were $28
million, a 180% increase in 5 years. 129 has an entrepreneurial
management team with extensive industry knowledge and
international experience. Day-to-day management of 129 is
supervised by Sudy Shen as President and Philip Lam as Chief
Financial Officer. The board of directors of 129 consists of
Messrs. Shen and Lam together with Michael Pang, Pete Mountanos
and Margaret Sharon Shen.
The management and Board of Directors of CRC are extremely pleased
with the proposed acquisition of the 129 group of companies
thereby allowing CRC entry at such an advanced level into the
exciting digital media industry. The proposed acquisition of 129
represents an extraordinary opportunity for CRC shareholders and
the Board of Directors recommends that all shareholders support
the proposed transaction.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Chase Resource Corporation
Ian Rozier
President
(604) 685-6851
Website: www.chaseresource.com
Email: ir@chaseresource.com
INDUSTRY: PCS
SUBJECT: TMN |
