| Paivis, Corp. Signs Definitive Agreement to Acquire Detroit Phone Cards, Inc. |
[Jan. 11th, 2008|05:25 pm] |
Paivis, Corp. is pleased to announce that it has signed a definitive
agreement with Detroit Phone Cards, Inc., a Detroit, Michigan-based company
("DPC") that generates approximately $30,000,000 in revenue (unaudited) to
acquire 100% of its assets.
DPC generates approximately $6,000,000 annually in prepaid cellular phone
revenue through its O-Mobile brand. The balance of revenue, approximately
$24,000,000, is from the sale and distribution of prepaid long distance
cards.
The closing date is planned for October 31, 2007 or later if extended by
mutual agreement. The closing of the acquisition of DPC is subject to
completion of a financial audit and other conditions. Paivis has also
agreed to provide working capital financing as part of the transaction. For
more specifics on the terms and conditions of the acquisition see the
definitive agreement which will be filed with the Securities and Exchange
Commission within the required timeframe.
Commenting on the completion of the definitive agreement, Edwin Kwong,
Paivis, Corp., Interim Chief Executive Officer, said: "We are very pleased
to have reached the definitive agreement stage with DPC. This acquisition
not only increases our revenue base and earnings potential, but also
expands our distribution and business lines into the GSM Cellular space,
through the DPC Get Mobile subsidiary. Additionally, upon closing we will
immediately gain cost savings that should add to the bottom line. We look
forward to closing and providing more growth and value to our
shareholders."
Rami Chahine, CEO, of Detroit Phone Cards, stated: "We are thrilled about
the completion of our definitive agreement with Paivis. Joining a public
company such as Paivis is a tremendous step forward for our company. We
believe together we can build a formidable operation to take advantage of
the prepaid space. We plan to work closely with Paivis to close the
transaction, immediately commence our integration and begin building value
as one company for all our shareholders."
About Paivis Corp.
Paivis, Corp. is a wholesale telecommunications carrier that sells prepaid
"point-of-sale activated" and live cards. 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.
About Detroit Phone Cards, Inc.
Headquartered in Dearborn, MI. Detroit Phone Card, Inc. ("DPC") was
established in September 01, 1997 as a leading provider of long distance,
wireless, point-of-sale and carrier services. Always putting our customers
first, we deliver reliable access to advanced, affordable
telecommunications products and services that meet their needs at home and
around the globe. Currently, our prepaid wireless and calling card products
reach consumers through more than 2,000 locations nationwide. We serve more
than 30,000 wireless customers and generate over 50 million network minutes
per month, with an employee team of 30 people. More info on DPC can be
found at the Paivis.com website.
Source: www.tmcnet.com/usubmit/2007/10/05/2993986.htm |
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