Alpha Virtual, Inc. has entered into a binding Letter of Intent to acquire EssTec, Inc. The transaction will be structured as a stock-for-stock exchange; there are 4,276,162 shares of EssTec issued and outstanding as of the date hereof, along with outstanding options and warrants to purchase an additional 1,660,979 shares of common stock.
The closing of the transaction is subject to certain conditions, including, but not limited to, negotiations of a definitive agreement and plan of merger, completion of "due diligence" investigations, receipt of all necessary approvals, and compliance with all applicable laws and corporate governance procedures. It is expected that the acquisition will close prior to June 30, 2003.
"We feel that this acquisition will bring substantial value to Alpha Virtual and create a new and exciting application for our OneView technology. Through the acquisition of EssTec, we will go from being a research and development company to a product-driven company," stated Charles Lesser, acting President of Alpha Virtual.
Lesser continued on to say, "We think that EssTec's architectural solution for workflow management as it has been deployed in the medical industry is a synergistic fit with our Company and provides opportunities for future product offerings in the medical industry and elsewhere."
Faysal Al-Zarooni, Chairman of the Board of EssTec, Inc., said, "We are very pleased to have entered into this agreement with Alpha Virtual. We feel that there are synergies between the companies and we think that this merger will be beneficial to both companies' shareholders."
Alpha Virtual, Inc. is an Internet software company designing and developing innovative Web collaboration software solutions. Its OneView technology allows businesses to quickly and easily add real- time Web cruising, rich media sharing, groupware, and chat/messaging features to existing Web sites. Alpha Virtual was formerly known as Perceptronics, a predecessor with a thirty-year-old track record in international defense industry software development.
EssTec is a hybrid technology platform and services company that has expertise in software application development, mobile data communications technology, and the understanding of the needs of targeted business's issues to develop mobile enterprise and workforce management solutions in several industry segments, including Financial Services, Field Service Automation, and Health Care. EssTec's operations are located in Los Angeles, Dubai (UAE), and Lahore (Pakistan). — (menareport.com)
© 2003 Mena Report (www.menareport.com)
