MANCHESTER, N.H., Oct. 7, 2011 /PRNewswire/ -- QED Connect, Inc.
(OTC: QEDN.PK) ("QED Connect"), today announced that it has entered
into an agreement to acquire 75% of Kaleidoscope Venture Capital,
Inc. ("Kaleidoscope") (OTC: KLDO.PK). Kaleidoscope's
satellite communication division, Kaleidoscope-TV, delivers DIRECTV
programming through its proprietary roof top central dish system.
Kaleidoscope-TV technology distributes multiple DIRECTV
satellite signals to customers on a single wire when coupled with
DIRECTV-developed technology. The central dish system allows
for a single compact dish antenna assembly to serve all the units
in an entire building complex. This eliminates the need for
each apartment/condominium in the building to have individual
DIRECTV satellite dishes, each requiring a direct line of sight to
the DIRECTV signal, and for additional coaxial cables running
throughout the building. The central dish system offers the
least costly and more aesthetically pleasing solution than
currently available to bring direct broadcast satellite to
multi-family residential properties or as multi-dwelling units
("MDUs"). The technology is also optimized to provide
state-of-the-art high-speed Internet and Voice Over Internet
Protocol (VOIP) telephone products to DIRECTV Service Operators and
customers.
Denny Andrews, Kaleidoscope's
Executive Vice President of Sales and Marketing, will head up
Kaleidoscope's new division, "Kaleidoscope Digital Media Systems,"
which will focus on customer integration of services and Social
Media Marketing deployment.
MDUs represent approximately 20% of the 110 million households
in the US which have one or more televisions. While direct
broadcast satellite services represent 29% of the overall
television delivery technologies in the
United States, satellite television delivery to MDU
households represents only .029% of overall media delivery.
Kaleidoscope-TV is initially focused on a broad array of apartments
and condominiums throughout the Seattle and San
Francisco markets.
Eric Luttio, President and CEO of
Kaleidoscope, commented, "Joining the QED Connect organization will
give us greater resources to implement our roll out of the central
dish rooftop technology and Kaleidoscope Digital Media Systems.
As a result, we believe that we can achieve sales of
$35 million over the next three
years."
Tom Makmann, President and CEO of
QED Connect added, "The acquisition of Kaleidoscope validates how
we are focused on executing our plan of seeking acquisitions and
joint ventures with promising companies. Kaleidoscope-TV's
technology offers a cost-effective solution to cable and we are
expecting Kaleidoscope to contribute to QED Connect's income in
2012. We will continue to look for additional companies to add to
our portfolio over the next few months."
As a result of the Kaleidoscope purchase agreement, QED Connect
will acquire 75% of Kaleidoscope's common stock and will receive an
additional 15% upon completion of funding of $750,000, with the option to be extended for up
to $2 million. The selling
shareholders of Kaleidoscope have the right to re-purchase up to
25% of Kaleidoscope once Kaleidoscope has reached 80% of its
expected over the next two years.
About QED Connect, Inc.
QED Connect, Inc. makes acquisitions, investments, and enters
into strategic business partnerships with businesses that have
strong potential. We seek joint ventures and strategic alliances in
which we can assist our partners in achieving their plans and
realizing their maximum potential. QED Connect's current
investments and joint ventures include:
- Sofame Energy, Inc., a joint venture with Sofame Technologies,
which has designed the "Hybrid Percomtherm®" boiler which recovers
boiler flue gas heat from existing boilers and recycles the heat,
thereby leading to overall energy efficiency. Sofame Technologies
has announced $1.4 million of orders
for the Hybrid Percomtherm boiler in the past 6 weeks.
- Nazz Productions, a movie producer. Nazz's feature film,
"Good Day For It", won Favorite Feature at the 2011 Sonoma
International Film Festival and opened theatrically in Los Angeles in July. Nazz expects the film to
be released on DVD and video on demand later this year.
- StockProfile.com, a media awareness company which operates a
customized platform showcasing emerging growth stocks to
independent investors. In June 2011,
QED Connect purchased 100% of the assets of StockProfile.com.
As a result of its continued success in the mergers and
acquisitions arena, QED Connect is considering becoming a "business
development company" as defined under the Investment Company Act of
1940.
For more information about QED Connect, visit
www.qedconnect.com.
Safe Harbor Statement
Certain statements in this press release that are not historical
facts are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements
may be identified by the use of words such as "anticipate,"
"believe," "expect," "future," "may," "will," "would," "should,"
"plan," "projected," "intend," and similar expressions. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of QED Connect, Inc. (the
"Company") to be materially different from those expressed or
implied by such forward-looking statements. The Company's
future operating results are dependent upon many factors, including
but not limited to the Company's ability to: (i) obtain sufficient
capital and to fund expansion plans; (ii) generate sufficient
revenue and efficiently manage operations to obtain profitability;
(iii) competitive factors and developments beyond the Company's
control; and (iv) other risk factors.
For More Information, contact:
QED Connect Inc.
Tom Makmann
President & CEO
(603) 425-8933
info@qedconnect.com
SOURCE QED Connect, Inc.