Company becomes first Publicly-Traded "Pure Play" in the Evolving Registered Traveler Industry
CHANTILLY, Va., Jan. 18 /PRNewswire-FirstCall/ -- FLO Corporation (OTC Bulletin Board: FLRP - News) today announced that it has met all SEC and FINRA requirements for public trading and its shares were approved for trading on the OTC Bulletin Board as of January 15, 2008. With trading initiated, FLO secures its position as the only pure-play, publicly-traded company in the Registered Traveler (RT) industry.
"We are thrilled to be operating as a public company in such an exciting growth industry," said Glenn Argenbright, FLO president and CEO. "FLO is addressing the evolving RT market through a model that we believe is unique and differentiated from other service providers. In addition to offering our solution to airports and airlines to operate their RT programs we are working to leverage our strategic relationships to enroll individual business travelers in the RT program through corporate marketing and bulk sales to employers."
Argenbright continued, "With over a dozen domestic airports now participating in the program and new airports indicating their desire to launch RT initiatives in the coming months, we believe that critical mass is building for this emerging market. However, it is our view that this program is just getting started. With under seventy thousand RT members enrolled nationwide, we believe that only 1 percent of the addressable market has been registered thus far. As such, we believe an expanding network of RT locations combined with our marketplace positioning will aid in our efforts to capitalize on an enormous opportunity."
As previously announced, FLO has agreed to acquire Unisys' (NYSE: UIS - News) TSA-certified RT solution, "rtGO." The agreement to acquire the rtGO business includes the operation of the RT program at Reno/Tahoe International Airport. FLO believes the acquisition will allow it to focus on corporate and member acquisition and to expedite its time-to-entry in important travel markets across the country. The transaction allows FLO to focus its resources on those airports, markets and enrollment locations where it believes return on capital will be greatest and most measurable.
Argenbright concluded, "We believe we are well placed to capture significant market share in the year ahead. We're taking steps both to consolidate the playing field and to fulfill specific business objectives. We're now a public company with a strong institutional investor base. Moreover, we've secured commitments from corporations to provide our unique product offering to their employees, which we believe helps validate our business model. Considering the steps that we have taken, and plan to take in the near-term, we are excited about our prospects for 2008 and beyond."
FLO Corporation provides a comprehensive solution for the Registered Traveler program, which is administered by the U.S. Transportation Security Administration. The Registered Traveler program is designed to identify air passengers who pose a minimal security risk and then to provide those passengers with access to faster and simpler processing at airport security checkpoints. FLO Corporation has formed the "FLO Alliance" -- strategic relationships with several companies with extensive expertise in credentialing, security, access control, customer service, travel services, political lobbying and corporate and consumer marketing -- designed to develop, market, sell and deploy an end-to-end solution and to provide next- generation RT 2.0 membership benefits to qualified individuals for expedited security screening in designated lanes at participating airports in addition to receiving promotional offers and discounts offered by retail partners. The FLO Alliance partnership consists of FLO Corporation, Microsoft, JPMorgan Chase, Smiths Detection Inc., The Paradies Shops, International RAM and ID Technology Partners. On October 5, 2007, FLO agreed to purchase certain assets related to Unisys's rtGO Registered Traveler business, including enrollment and verification kiosks and related equipment, intellectual property, prepaid rtGO memberships, the designation and certification of Unisys's Registered Traveler technology under the SAFETY Act, and certain material contracts used in Unisys's rtGO Registered Traveler business. Each party's obligation to complete the transaction is subject to the satisfaction or waiver of various conditions, including but not limited to the receipt of consent to assignment of certain agreements with third parties, our receipt of certification from the American Association of Airport Executives, and the receipt of approval of the U.S. Department of Homeland Security to the transfer to us of the designation and certification of Unisys's Registered Traveler technology under the SAFETY Act. For more information about the FLO program and Alliance visit http://www.flocard.com.
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This release contains information about our management's view of our future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors. For example, our business will depend on our ability to establish and maintain strategic relationships with travel services, technology, and other companies. If we are unable to establish and maintain such relationships, or if current relationships were to weaken, our actual results may differ materially from those indicated by the statements made in this release and our business could suffer. In addition, there is a very limited number of public companies with any Registered Traveler operations. Although a market maker has filed with the FINRA OTC Compliance Unit the forms required to initiate quotations of our common stock on the OTCBB, there may not be sufficient investor interest in our company for the development of an active trading market. If an active trading market does not develop, you may have difficulty selling any shares that you buy. Further, if we do not close the rtGO acquisition, or if we are unable to successfully integrate the Unisys rtGO solution in a timely manner, our business and future prospects could be harmed. We expect to close the transaction during the first quarter of 2008. However, we may be unable to close this transaction. Currently, we do not have sufficient funds to complete the rtGO acquisition, do not have any arrangements in place for any future financings, and may not be able to secure sufficient financing on favorable terms, or at all. Our failure to close this transaction could harm our financial condition and future prospects and we may not achieve the expected benefits of the transaction in the near term, or at all. Other factors that could cause actual results to differ materially from historical results or those indicated by the statements in this release include, but are not limited to, risks and uncertainties associated with our financial condition, our planned acquisition of Unisys's rtGO RT business, and our efforts to meet the TSA's requirements to offer RT services to sponsoring entities, as well as those included in our registration statement on Form 10- SB filed with the Securities and Exchange Commission on December 10, 2007, and other documents we periodically file with the Securities and Exchange Commission.
News 
Market Data 
Discover 
