GIANT!!! NEWS!! Motion DNA Signs Agreement With Formula 51-2, for a Buy-Out of All Outstanding Shares for a Final Price of $3.125 Per Share!
5/3/2005 11:10:28 AM
PHOENIX, May 3, 2005 /PRNewswire-FirstCall via COMTEX/ -- Motion DNA Corporation (Pink Sheets: MTDX), announced today that it has signed an agreement with Formula 51-2, LLC for a buyout of all its outstanding shares. The deal with a total value of $74.6 Million will become effective on May 23, 2005, after the company's required shareholder meeting to vote on the issue.
After meeting on Thursday, representatives of both companies agreed upon a price of $3.125 for each share of the company. The final agreement has now been signed and a formal vote on the issue by Motion DNA shareholders is scheduled.
Under Nevada law, the company is required to hold a shareholder meeting to formally vote on the issue. The Board of Directors of Motion DNA has scheduled a shareholders meeting for May 19, 2005. The vote is to be held from 9 am to 4 pm Mountain Standard time. The only agenda item is the opportunity for shareholders to exercise their rights to vote on the matter of share buyout by Formula 51-2, LLC. Each shareholder will be given a confidential login, required to register their votes.
Instructions will be sent via direct mail to the address of record for each shareholder on how and where to call to register their confidential votes. Shareholders will have an opportunity to review the signed agreement prior to their vote.
Recently, Motion DNA has secured contracts with several key clients including Perfect Game USA, the nation's largest baseball scouting services for colleges and professional teams. The company has also finalized contracts with the National Pro FastPitch League, a newly formed league for professional fastpitch softball players and a development partner of Major League Baseball. Motion DNA has also entered into a distribution agreement for a new consumer product, which compliments its portfolio of motion capture systems.
Company officials predict revenues of approximately $8.6 Million in 2005 based largely on the value of existing contracts and its customer and prospects databases. The company's newest product, PureFlight for Baseball, manufactured by Zelocity, Inc., has been well received in the sports market. PureFlight is expected to contribute heavily to the company's revenues in 2005 and 2006. Retail distribution agreements for the PureFlight could significantly increase Motion DNA's distribution of this consumer product, providing the company with exponential growth in revenues.
Company officials are also close to what they feel are several key additional contracts which could push revenues past $15 Million in 2005, leading to a more significant increase in company revenues during the 2006 fiscal year. In 2004, the company took in over $1.4 Million while spending over $700,000 developing new and advanced applications to its software and hardware.
"Our goal is for Motion DNA to reach $100 Million in sales in a relatively short period of time," said Bryan Greenwood, Chief Financial Officer of Motion DNA. "The acquisition by Formula 51-2 provides the company with access to much needed capital required to support some of the proposals under review by potential clients and strategic partners."
Currently, the company's financial position allows for slow steady growth. Formula 51-2's plan is to accelerate that growth and turn the company into a major international corporation.
Consistent with the original request from Formula 51-2, the company has not increased the stock into the public market. Currently, the company does not own any shares in the public market and as a part of the agreement, the company will return four million Rule 144 restricted shares to the treasury to reduce the issued and outstanding shares on the books and records of the company prior to the
