HUGE NEWS!!
Petel Incorporated Expansion and Dividend Update PR Newswire "US Press Releases "
LONDON , June 22 /PRNewswire-FirstCall/ -
A2A Group Plc Business Combination
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Petel Incorporated has renegotiated its planned Business Combination with UK broadband channel platform provider A2A Group Plc.
Under the new agreement:
Each Petel Incorporated shareholder will receive two (2) A2A Group Plc shares at market price for every one (1) Petel Incorporated share held on 11 June 2007 .
Under UK law the A2A shares must be issued in the first instance to the Company which will contact shareholders to arrange distribution.
Petel Incorporated will issue 100,000 shares to A2A Group Plc.
This new agreement reduces the dilution of Petel Incorporated Outstanding Shares and the dividend value by a factor of 50 whilst maintaining the shareholder value benefits of the original proposal.
Medify Solutions Limited
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The Company is considering a proposal to separate Medify Solutions Limited from Petel Incorporated. At this time the Company does not feel it can apply the appropriate investment or resource required to progress Medify Solutions Limited.
The transaction is subject to the identification of a suitable management team. It is proposed to float the new entity of the OTC Pink Sheets.
Under the proposed terms of the new floatation, all Petel Incorporated shareholders will receive one share in the new Medify Solutions entity for every Petel Incorporated share held at the date of record (to be announced on completion of the agreement).
The Board feel this is the best option to progress further development of the Medify Solutions Limited and anticipates discussions will be completed in approximately 6-8 weeks, with a further update to shareholders at this time.
Notes:
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US shareholders seeking more information on Plus Market brokers should visit www.plusmarketsgroup.com/PLUS_brokers.shtml for a list of brokers who have the facility to trade Plus Markets.
Petel Incorporated's five year forecasts and business plan are included in the Corporate Overview, published on the Investor Relations page at www.petel.co.uk
ENDS
This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. The words "estimate," "project," "intends," "expects," "believes," and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbour" provisions of the Private Securities Litigation Reform Act of 1995. For a more complete description of these and other risk factors that may affect the future performance of Petel, Inc. see "Risk Factors" in the Company's Annual Report on Form 10-KSB and its other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made and the Company undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.
SOURCE Petel Incorporated
