Saratoga Announces Agreement to Sell Distributions Car-Tel Inc.
July 29 2011 - 12:13PM
Marketwired
Saratoga Electronic Solutions Inc. (the "Corporation")(TSX VENTURE:
SAR). The Corporation announces that it has entered into an
agreement to sell its subsidiary Distributions Car-Tel Inc.
("Car-Tel") to a member of the management of Car- Tel for a
purchase price of approximately $1.36 million, to be paid through a
combination of cash and the assumption of certain specified
liabilities. Car-Tel is in the business of distributing to
consumers point-of-sale activated prepaid cellular telephone PINs
and long distance calling cards, and offering to retailers a
variety of electronic gift card solutions. This transaction results
from the previously announced strategic review undertaken by the
Corporation.
Closing of this transaction is subject to the negotiation and
execution of definitive transaction documents, as well as the
receipt of all requisite regulatory approvals, and is expected to
occur in the Corporation's second quarter.
About the Corporation
In addition to its prepaid products business, the Corporation
also places and operates a network of automatic teller machines in
Eastern Canada through its subsidiary Saratoga ATM Corporation
Inc.
Forward-Looking Statements
This news release contains certain forward-looking statements
concerning our future operations, economic performance and
financial condition and our proposed sale of Car- Tel. These
statements are based on certain assumptions and analyses made by us
in light of our experience and our perception of historical trends,
current conditions and expected future developments, as well as
other factors we believe are appropriate in the circumstances.
However, whether actual results and developments will conform to
our expectations and predictions, and whether we are ultimately
successful in consummating the sale of Car-Tel, is subject to a
number of risks, uncertainties and assumptions, including our
ability to successful conclude definitive documentation and obtain
the requisite approvals in connection with such sale, as well as
those discussed in our Annual Information Form and Management's
Discussion and Analysis. Consequently, all of the forward-looking
statements in this news release are qualified by these cautionary
statements, and there can be no assurance as to the Corporation's
ability to consummate the sale of Car-Tel or as to the
Corporation's ability to enhance shareholder value through this
process. Moreover, there can be no assurance that the results or
developments anticipated by us, including as regards our financial
resources, will be realized or, even if substantially realized,
that they will have the expected consequences to or effects on us
and our subsidiaries and their business or operations. We undertake
no obligation and do not intend to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under
applicable law.
Contacts: Saratoga Electronic Solutions Inc., Mr. Georges Durst
President and Chief Executive 514-529-0663
Saratoga Electronic Solutions (TSXV:SAR)
Historical Stock Chart
From Sep 2024 to Oct 2024
Saratoga Electronic Solutions (TSXV:SAR)
Historical Stock Chart
From Oct 2023 to Oct 2024