CTX Virtual Technologies, Inc. ("CTXV" or the "Company") (Pink Sheets: CTXV) announced today that it received a financing offer from a private equity firm relating to the company’s plan to acquire a controlling interest in a strategic automotive parts manufacturer (previously announced in November 2010). The $8.0 million financing is subject to due diligence and the approval of final terms by the board of directors of CTX.
Clifford M. Rhee, CEO, stated, "This financing is an important step to complete the planned acquisition of a strategically important manufacturer which will provide a platform for CTX to supply our proprietary Heads Up Display (HUD) and other innovative products."
Financial terms of the proposed transaction were not released. In 2010, the target acquisition company achieved $72.0 million in sales with $6.9 million EBITDA.
CTX Virtual Technologies, Inc.
CTX Virtual Technologies, Inc., through its subsidiaries, is a virtual telecommunications technology company with facilities in the U.S., China, Canada, and Korea. For more information about the Company, please visit the Company's web site at www.ctxtechnologies.com.
Forward-Looking Statements - The statements made in this release that are not historical facts contain forward-looking information that involves risks and uncertainties. All statements, other than statements of historical facts, which address CTX’s expectations, should be considered as forward-looking statements. Such statements are based on knowledge of the environment in which CTX currently operates, but because of risks and uncertainties, actual results may differ materially from the expectations expressed in the forward-looking statements. Important factors that may cause actual results to differ from anticipated results include, but are not limited to our ability to obtain orders and fill orders on a timely basis, our ability to obtain funding as and when needed, market acceptance of new products incorporating our technologies, the success of our product design and research and development efforts, intense competition, risks of doing business in China and other foreign markets, our ability to manage growth and our ability to successfully protect and enforce our intellectual property rights.
