Very nice, that was overdue imo. Would have gone sooner if A-turd was not restricting buys. I'm betting 1millionfl is wrapped up in it, he likes PAVC ;)
PAVC Signs Letter of Intent to Acquire Detroit Phone Cards, Inc., a Profitable Prepaid Cellular and Prepaid Long Distance Card Company Acquisition Would Add $30,000,000 in Revenue to Paivis Corp.; Acquisition Would Put Paivis in Higher Margin Prepaid Cellular Business; Acquisition Will Expand Distribution Channels; Acquisition Should Improve Infrastructure Efficiency Aug 2, 2007 4:17:00 PM ATLANTA, GA -- (MARKET WIRE) -- 08/02/07 -- Paivis Corp. ("PAIVIS" or the "Company") (OTCBB: PAVC) is pleased to announce that it has entered into a Letter of Intent (LOI) with Detroit Phone Cards, Inc., a private eastern-based United States corporation that generates approximately $30,000,000 in revenue to acquire 100% of its outstanding stock. The transaction is subject to due diligence, the usual and customary conditions, and entering into a definitive agreement. In accordance with the terms of the LOI, Paivis would purchase 100% of the outstanding shares of its stock in exchange for stock and cash.
The target acquisition company generates approximately $6,000,000 annually in prepaid cellular phone revenue. The balance of revenue, approximately $24,000,000, is from the sale of prepaid long distance cards.
The Company expects that upon a successful closing this acquisition will add earnings to the Company's income statement. Paivis management anticipates this acquisition will improve its infrastructure and therefore provide costs savings and eventually increase margins.
Rami Chahine, President and Chief Executive Officer of Detroit Phone Cards, Inc., commenting on this proposed acquisition said: "We are excited about joining the Paivis team and look forward to getting the Definitive Agreement signed."
Gregory L. Bauer, President and Chief Executive Officer of Paivis, commenting on this proposed acquisition said: "We are excited about all of our acquisition prospects, but this particular acquisition puts us into the prepaid cellular service business, which gives a high margin business line to expand upon and increase our potential for quality earnings. The combination with this business also expands our revenue base in the prepaid card business and brings additional infrastructure that will develop certain positive economies of scale. We look forward to completing this transaction and providing more growth and value to our shareholders."
The recently executed LOI stipulates that the parties will work in good faith to execute a definitive agreement as soon as possible, the purchase price will be a combination of stock and cash final terms will be disclosed in the definitive agreement. Paivis has also agreed to provide working capital financing as part of the transaction.
About Paivis Corporation
Paivis Corp. is a wholesale telecommunications carrier that sells prepaid "point-of-sale activated" and live cards; these calling cards are currently in approximately 5,000 retail outlets in the U.S. Current retail distribution reaches over 5,000 locations, generating approximately $7 million in annual revenue. Paivis is poised to increase this distribution each month.
Paivis generates its revenues through the sale of prepaid calling cards and wireless services, and international wholesale termination. Products are sold throughout many of the country's major retail outlets, including Duane Reade, 7 Eleven, and Chevron and marketed through important distribution agreements. Paivis focuses on marketing its phone cards to many ethnic communities that generate high levels of international traffic. The cards provide access to more than 230 countries.
FORWARD-LOOKING STATEMENTS
The Private Securities Litigation Reform Act of 1995 (the "PLSLRA") provides a "safe harbor" for forward-looking statements so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in such statements.
Statements contained herein that are not based on historical fact, as well as other statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "will," "could" and other similar expressions, constitute forward-looking statements under the PSLRA. PAIVIS intends that such forward-looking statements be subject to the safe harbor created thereby. Such forward-looking statements are based on current assumptions but involve known and unknown risks and uncertainties that may cause PAIVIS actual results, performance or achievements to differ materially from current expectations. These risks include economic, competitive, governmental, technological and other factors discussed in PAIVIS annual, quarterly and other periodic public filings on record with the Securities and Exchange Commission which can be viewed free of charge on its website at http://www.sec.gov.
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