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Tempco and Esio sign Letter of Intent for business combination
Tempco and Esio sign Letter of Intent for business combination
Dec. 29, 2010 (M2 Communications Ltd.) --

Tempco Inc (OTC.BB: TEMO) and Esio Franchising LLC have entered into a non-binding Letter of Intent outlining the proposed formation of a business combination between the two companies.

Tempco is a 'shell company', with its only business activity being to seek a combination with an operating company.

Esio is a franchiser of dealerships in equipment and supplies for the home beverage dispenser, manufactured and sold by its affiliate, Esio Beverage Company.

The consummation of this transaction, which was announced on Tuesday, remains dependent on and subject to the satisfactory results of mutual due diligence efforts and agreement on specific terms for the transaction. Financial details of the transaction were not available.

It also includes agreement on the details of the future relationship and dealings between the two Esio companies acceptable to Tempco, satisfactory results of an audit of the Esio financial statements and the ability of Tempco to obtain not less than USD 2.5m from investors.

The companies have reportedly agreed to use their best efforts to close the merger on or before 24 March 2011. Also, each has agreed to exclusively negotiate with the other until 24 June 2011, subject to limited earlier termination.

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Source: M2 Presswire (December 29, 2010 - 8:00 PM EST)

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