NewMarket Technology, Inc. Closes Transaction Publicly Listing Chinese Operation with $20 Million in Anticipated Annual Revenue
Friday October 27, 9:40 am ET
Company Acquires Intercell International Corporation and Reorganizes Chinese Operation into Intercell
DALLAS--(BUSINESS WIRE)--NewMarket Technology, Inc. (OTCBB:NMKT - News) today announced completing the transaction to publicly list its Chinese operation with $20 million in anticipated annual revenue. NewMarket's Chinese operation reported $10 million in revenue through the first two quarters of 2006. The Chinese operation has been reorganized into Intercell International Corporation (OTCBB:IICPQ - News). NewMarket acquired the majority interest in Intercell resulting in the NewMarket Chinese operation becoming an independently listed, consolidated subsidiary.
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"The first successful public listing of an emerging technology subsidiary is a major benchmark for NewMarket," said Philip Verges, CEO and Chairman. "NewMarket has introduced a new process for bringing emerging technologies to market. We have successfully generated award winning revenue growth over the last five years in the execution of the first half of this new process where we combine a traditional systems integration operation with our own brand of technology incubation. The second half of our new process for bringing emerging technologies to market involves the independent public listing of consolidated subsidiaries. The independent listing of a consolidated subsidiary will enable NewMarket shareholders to benefit directly from the Company's investment in incubated technologies as we plan to issue stock in our independently listed consolidated subsidiaries in shareholder dividends. We look forward to demonstrating success with our dividend strategy that matches the success we have already enjoyed executing the first half of our new process."
Deloitte Fast 500 Award
Last week Deloitte announced NewMarket Technology is ranked fifth on Deloitte's 2006 Technology Fast 500, a ranking of the 500 fastest growing technology, media, telecommunications and life sciences companies in North America. This is the third year in a row that NewMarket has been ranked on Deloitte's Technology Fast 500. For more information on Deloitte's Technology Fast 50 or Technology Fast 500 programs, visit www.fast500.com.
Transaction Details
The transaction to publicly list NewMarket's Chinese operation involves a reorganization agreement exchanging 2 million shares of Intercell common stock for one hundred percent (100%) of the issued and outstanding of NewMarket China. In a related preferred stock purchase agreement, NewMarket acquired control of Intercell. The preferred stock purchase agreement provides NewMarket Technology with preferred stock that represents sixty percent (60%) ownership of Intercell with dilution protection. NewMarket China's revenues will be reflected in Intercell's 2007 revenue. Intercell began its fiscal 2007 year on October 1, 2006. Management of NewMarket Technology has initiated efforts to change the name of Intercell to NewMarket China.
The NewMarket Technology Annual Town Hall will be held in New Orleans on December 7, 2006, at 3:30 pm CST. The Town Hall meting will be held at the centrally located Royal Sonesta Hotel (www.royalsonestano.com). American Airlines (NYSE:AMR - News) has offered discounted airfare on all flights to New Orleans from across the country between Dec. 5 - Dec. 10, 2006. To receive the discounted rate, attendees should go to www.aa.com or call American Airlines Group Services at 1-800-433-1790. When making your reservation, please use discount code "A64D6AO."
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