IVP Technology Sells Mobile Games Division
26 Fevereiro 2004 - 11:00AM
PR Newswire (US)
IVP Technology Sells Mobile Games Division TORONTO, Feb. 26
/PRNewswire-FirstCall/ -- IVP Technology Corp. (BULLETIN BOARD:
TALL) , d.b.a. ActiveCore Technologies Inc., announced today that
it has sold majority control of its mobile games division to
1607590 Ontario Limited for approximately $1,750,000 effective
March 1, 2004. 1607590 Ontario Limited will be renamed SilverBirch
Studios Inc. following completion of legal documentation.
SilverBirch Studios Inc. is currently majority controlled by Kevin
Birch, who has resigned from ActiveCore Technologies effective
immediately. The games division transaction will proceed as a sale
of assets, the terms of which have been approved by the independent
members of ActiveCore's board of directors. Thepurchase price will
be satisfied by a 12% convertible debenture for approximately
$750,000 payable over two years plus a 2% royalty on all gross
revenues to a cap of $1,000,000 expiring in 5 years. ActiveCore
will retain the right to convert the outstanding balance of the
$750,000 debenture into equity in 1607590 Ontario Limited prior to
the expiry of two years, subject to certain limitations, at the
then prevailing share price of 1607590 Ontario Limited. ActiveCore
Technologies will retain an initial 5% equity holding in the new
company with a right to participate in further equity raising to
maintain its ownership level. Brian MacDonald, chairman and CEO of
ActiveCore said, "The sale of the Games Division is a major
business focus watershed for ActiveCore. We have built two
successful divisions within a short period of time, both of which
are poised to deliver immediate and excellent returns. While some
of our shareholders will be disappointed by the sale of the games
division, the sale will maximize immediate shareholder returns in
2004 and 2005. The overall market for middleware enabled mobile and
web based enterprise applications is far larger than for mobile
games." Continuing on Mr. MacDonald also said, "From a financial
perspective, ActiveCore will begin to receive royalty, interest and
principal payments combined with an immediate reduction of
approximately $1,400,000 in annual overheads related to the games
division. Some of the overhead savings will be redeployed to boost
our successful "smart enterprise" products and services under both
the ActiveCore and MDI Solutions names and brands. Solely as a
result of the sale of the games division, and based on an estimated
325,000,000 shares outstanding, we believe we will be able to
generate a minimum of $0.01 additional positive earnings per share
during the current 2004 fiscal year. Our decision to sell the games
division substantially reduces the level of operational risk in the
company while providing us with an on goingstake in the mobile
games market as revenues and profits in that market area grow over
the next two years." Brian MacDonald also said, "Our recent
strategic partnership with BiznizWeb Inc. of Houston has lead us to
concentrate our operations through amajor investment in mobile and
middleware enabled portals and in MDI Solutions, which in turn,
with future acquisitions, will allow us to become a bigger factor
and participant in the what the Gartner Group terms 'Smart
Enterprise Suites.' We see the ability to focus on the 'smart
enterprise' market segment as providing substantially greater
shareholder value over the short to medium term than spreading our
attention over two increasingly divergent business divisions. Our
ability to create and sustain a viable mobile games division over
the last year will however continue to contribute to ActiveCore's
overall market value through our passive investment in SilverBirch
Studios." Kevin Birch, chairman and CEO of the new SilverBirch
Studios Inc., said "Since its inception, IVP's mobile games
division has rapidly grown to become a leading, progressive
developer of games and ring tones, and we feel that its Recess
Games portal is the finest mobile content distribution platform in
the industry. Thisacquisition is validation of our belief in the
division, and we are very excited about this transaction and the
anticipated benefits for both IVP and SilverBirch. We look forward
to an ongoing, mutually beneficial business relationship with
ActiveCore." In other news the company also announced that Hawk
Associates will no longer be providing Investor Relations services
for ActiveCore, also effective March 1, 2004, although the company
will continue to be represented on The American Microcap Institute
website at http://www.hawkmicrocaps.com/ where Sarbanes Oxley
mandated materials of interest to investors in ActiveCore
Technologies Inc. may be accessed. About BiznizWeb Inc. BiznizWeb
Inc. d.b.a. DynaPortal Software Company is a privately held Texas
corporation created by a group of seasoned professionals that
combine years of traditional IT and business expertise with the new
energy of the Web to produce quality portal software. Since 1995,
DynaPortal has been creating Web applications that exploit new
communications and information channels. As both business computing
and media converge on the Web platform, the company strives to
produce innovative new ways to exploit this exciting e-Business
environment. More information may be obtainedat
http://www.dynaportal.com/. About SilverBirch Studios Inc.
SilverBirch Studios Inc. (http://www.silverbirchstudios.com/) is a
newly incorporated Canadian company which has acquired certain
assets and operations of ActiveCore Technologies. The company is a
developer, publisher and distributor of mobile games and ring
tones. More information may be obtained by contacting Kevin Birch
at . About ActiveCore Technologies, Inc. IVP Technology
Corporation, d.b.a. ActiveCore Technologies, Inc. is an emerging,
fast-growing software company that develops, distributes and
implements middleware enabled mobile and web applications.
ActiveCore is rapidly becoming a major participant in Gartner
Group's "Smart Enterprise" sector. ActiveCore also owns
MDISolutions, a North American wide IT and specialized integration
service primarily to the healthcare industry. Mobile and web
solutions sold by ActiveCore Technologies allow business customers
to "integrate, enable and extend" back office and legacy systems to
meet the needs of customers and staff wherever they may be located.
For investor relations information contact Brian MacDonald at (416)
252-6200 extension 313. Detailed information about ActiveCore can
be found on the website http://www.activecore.com/. Copies of
ActiveCore press releases, current price quotes, stock charts and
other valuable information for investors may be found on the
website http://www.hawkmicrocaps.com/ Forward-Looking Statements
Statements contained in this news release regarding IVP Technology
and planned events are forward-looking statements, subject to
uncertainties and risks, many of which are beyond IVP Technology's
control, including, but not limited to, reliance on key markets,
suppliers, and products, currency fluctuations, dependence on key
personnel and trade restrictions, each of which may be impacted,
among other things, by economic, competitive or regulatory
conditions. These and other applicable risks are summarized under
the caption "Risk Factors" in IVP Technology's Registration
Statement on Form SB-2 filed with the Securities and Exchange
Commission on December 24, 2003. Forward-looking statements by
their nature involve substantial risks and uncertainties. As a
result, actual results may differ materially depending on many
factors, including those described above. DATASOURCE: IVP
Technology Corp. CONTACT: Brian MacDonald of ActiveCore
Technologies, Inc., +1-416-252-6200, ext. 313; or Kevin Birch of
SilverBirch Studios Inc., Website: http://www.activecore.com/
http://www.silverbirchstudios.com/ http://www.dynaportal.com/
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