Cinemage Acquires Web Conferencing Operator Be-Intouch
The merger combines the power of the Cinemage proprietary data base storage and retrieval engine with the Be-Intouch full-featured Web conferencing suite.
Vancouver, BC (PRWEB) September 6, 2006
Cinemage Corporation is pleased to announce that the Company has entered into an agreement to acquire Be-Intouch, Inc. of Issaquah, WA and its wholly owned subsidiary Splice Communications LLC of Seattle, WA under a Share Exchange Agreement signed August 11th, 2006. Under the Agreement, Cinemage will issue 15 million common shares for all of the issued and outstanding shares of Be-Intouch on closing of the transaction. An additional 10 million Bonus Shares may be issued over a 15-month period if consolidated gross revenues by the end of that period reach $1 million USD. The Agreement is subject to TSX Venture Exchange approval, and may require Cinemage shareholder approval.
“I am extremely pleased with this Agreement”, said Edgar Froese, President and CEO of Cinemage. “In Be-Intouch we have not only a complementary Internet technology service provider, but also a management team that can help build sales for the suite of Intellectual Properties Cinemage has developed.”
Cinemage, which began trading on the Alberta Stock Exchange in December of 1999, acquired Advanced Cultural Technologies Inc. (ACT) as a wholly owned subsidiary in October, 2001. ACT began technology development in 1994, and was founded in 1990 by Froese on his leaving the University of British Columbia where he had worked in computer and network systems development and management for 20 years, pioneering the founding of the Internet in British Columbia.
Be-Intouch was founded in March 2005 by C. C. “Kip” Steele and John A. Hansen, and reached agreement to acquire its wholly owned subsidiary Splice Communications in May of 2006. The Splice merger will be finalized concurrently with the Cinemage acquisition of Be-Intouch. Splice was founded in January 2003, and provides telecommunications services in the U. S. Northwest. Kip and John were joined by Kirk Smith in November 2005, and Garry Welch took over as Chairman of Be-Intouch in May 2006.
Positioned in the on-line Internet virtual meeting sector, the Be-Intouch system integrates fully interactive voice (VoIP) and video communications with a complete set of computer-based presenter tools including white board, PowerPoint, Word or spreadsheets that can be used for a diversity of applications such as: sales presentations; real-time technical guidance and assistance; educational courses; or new product introductions.
“We see using the Be-Intouch system as a strategic component of our sales and marketing programs for our products and services”, added Froese. “Cost effective marketing is critical for technology companies at this time. Be-Intouch management in turn sees using the Cinemage Content Management e-Commerce system to up-sell products and services to meeting attendees on the Be-Intouch service. Thus there is great synergy between the two companies in their products and services and business development goals.”
Complementing the business opportunity is a strong management team. Founder and Director Kip Steele, raised a Canadian, received his Liberal Arts Degree from Ohio State University in 1961. He began his early career in marketing with A. C. Nielson Corp., moved to banking with Seattle Trust and Savings Bank, and finally combined the two by joining First Priority Corp. in international banking market research, becoming President of that firm in 1972. In 1976 Kip started a 24-year career with Tri W Distributors, responsible for the firm’s move into computerization and telecommunications. He managed the human resources department, corporate benefit and insurance programs, regulatory affairs, sales and marketing programs, dealer training and product reviews.
Co-founder and Director John A. Hansen received his B. E.E.-degree in 1964 from the University of Minnesota in electrical engineering with a specialty in computers and advanced mathematics. He has early experience with the Internet and maintains a current personal knowledge of Internet development, telecommunications and cable technologies. Mr. Hansen has accumulated more than 30 years of corporate management experience, including the management of four companies with total P&L responsibility and serving on 14 Boards of Directors. He has founded, co-founded, or assisted in the founding of eight companies.
Be-Intouch CEO G. Kirk Smith received two baccalaureate degrees from Ohio State University and a Masters in Business Administration from Capital University in 1979. He has since specialized in financial and administrative management. As COO of Professional Investment Management, Inc. within three years he turned around operations and grew their fund of defined benefit plans from $11 million to $52 million. As President and co-founder of Drug Emporium, he grew operations to 5 franchise stores and $25 million in product sales. In 1987 Kirk co-founded Simpson Hayward, Inc., an out-placement consulting firm. As President and subsequently CEO, he expanded the scope of the firm from a regional service with one product, to an international service with a diversified product line and multiple delivery options.
Now leading Be-Intouch product commercialization as Chairman, Mr. Garry L. Welch previously served as a senior executive in several new business ventures including: a wireless short message service company; an ASP that served the commercial finance industry; a streaming media company; and a network management software company that served telecommunications companies. He was previously CEO of Path Broadband, a wireless ISP. Prior to this, his career spanned more than 25 years as a senior executive with McCaw Cellular, AT&T, Lucent Technologies, and General Electric. He currently serves on the board of advisors for ViVOtech, a mobile commerce technology company.
Mr. Welch received a B. S. in Mathematics and Electronics from Missouri State University, an MBA from Santa Clara University and MSU. He has completed the Strategic Marketing Management program at the Harvard University Business School.
“You’ve got to look beyond the balance sheet in assessing an opportunity in the current reporting environment”, concluded Froese. “We’re pleased that Be-Intouch management values the commercial potential of the Cinemage suite of Intellectual Property, given that our substantial deferred development costs were written off in 2003 and expensed ever since. We similarly appreciate the huge potential that the virtual meeting room market represents, given: continuing high prices for fuel that add significantly to travel costs; growing impediments to trans-border travel; and the increasing fear factor that terrorist threats add to air travel.”
While the Company intends to take full advantage of the many efficiencies that can be derived between the member companies’ operations, there are no plans at this time to move business operations of any member company.
For more information see: www. beintouch. com; www. splicecomm. com; and/or www. cinemage. com or call Edgar Froese at 604-230-2320.
ON BEHALF OF THE Cinemage Corporation BOARD OF DIRECTORS:
Edgar W. Froese
President & CEO
604 669 0699
THE TSX VENTURE EXCHANGE INC. HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This News Release contains certain "Forward-Looking Statements". All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
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