ATVE aka TALL continues to act well after a series of bullish PR's. Hopefully there's some substance behind their optimism. In the latest PR they announce plans for additional profitable acquisitions with debt financing ....
Stock has gone from .05 to .16 in the past 5 weeks on strong volume ....
TORONTO, Sept. 28, 2005, Sep 28, 2005 (PRIMEZONE via COMTEX) -- ActiveCore Technologies, Inc. (ATVE) announced today that it has retained the services of Pathpoint Capital to assist in the identification and financing of a strategic acquisition. It is contemplated that the two parties will target several U.S. based organizations that ActiveCore considers to be synergistic with its core business, and that any transaction which gets consummated will be debt financed.
Pathpoint recently completed a due diligence investigation of ActiveCore, prior to determining that they would proceed with this engagement. This exercise encompassed financial and operations reviews, as well as an evaluation of the Company's new management group and their strategic direction.
Bryan Keeler, partner at Pathpoint, commented "The directional decisions and strategic acquisitions made over the last year have positioned Activecore for the next level of growth. We are pleased to be associated with what we see as a strong, experienced new management group."
Pathpoint and ActiveCore have already initiated discussions with potential targets. Although no firm date has been set to complete a transaction, ActiveCore indicated that this process would likely extend until early 2006.
With respect to the types of companies being considered as potential acquisition targets, the Company is currently examining a number of possibilities presented by Pathpoint, but acknowledged that the most logical move would be to add new revenue to its corporate messaging business to help bring the CDM division more in-line with the current size of its SIM division. Recent M&A transactions involving corporate messaging businesses have commanded impressive revenue and earnings multiples, primarily due to the high margins and recurring revenue model the underlying business can deliver.
Peter Hamilton, CEO of ActiveCore elaborated, "We anticipate that the next strategic move ActiveCore makes will be a sizable one. As indicated through recent press releases, we are pleased with the current status of our existing businesses, and we feel we are ready as an organization to take a next step. Although there are numerous variables impacting our evaluation process of potential targets, we would certainly like to be able to add a minimum of $5 million -- $10 million USD of profitable revenue by early 2006."
AI
