MediaTechnics Corporation Announces Significant Changes to Greatly Increase Shareholder Value
January 05 2010 - 3:05PM
Business Wire
MEDIATECHNICS CORPORATION, (Pink Sheets: MEDT) is pleased to
announce that it has sold its MediaTechnics Systems, Inc. (MTS)
division to its former CEO, Richard D. Wilson. MediaTechnics
Corporation will continue to develop, and plans to market, a new
line of integrated energy efficient computer, home control and
lighting systems with a particular focus on developing new
technologies to build a cleaner environment and reduce carbon
emissions in the strong belief that green technologies will be the
among fastest growing market segments in the years to come.
Sale of Mediatechnics Systems, Inc.
2008 and 2009 were very difficult years for the global economy,
and the media duplication equipment business was no exception.
Substantially all of MEDT’s losses during the last two fiscal years
came from MTS. While losses at MTS appeared to be declining,
revenue also continued to decline, and those continuing losses
threatened MEDT’s viability. Management determined that drastic
action, requiring substantial time and investment, would be
required to effectuate a turnaround, and while management believes
that, given sufficient time and capital, such a turnaround might be
possible, in the end it was determined that shareholders would be
better served having those monies invested in market segments that
management believes have significant growth potential. As a result
of this determination, the Company negotiated an agreement to sell
the entire unit in exchange for the return and cancellation of all
sums paid for the division, and a note covering most, if not all,
of investments made by MEDT in MTS.
Near Term Effects
Management believes that the net result of this transaction will
be a significantly strengthened balance sheet and a return to net
positive equity. Furthermore, management has successfully concluded
the conversion of the vast majority of MEDT’s remaining debt into
equity. This should enable the Company to effectuate a substantial
dividend distribution of ANYT shares, subject to all applicable
laws and regulations governing such transactions. We anticipate
providing further details regarding any dividend in the near
future.
Changes to the Board and Management
Richard D. Wilson has resigned from both the Board of Directors
and as President of the Company. Ari Bass has succeeded Mr. Wilson
as President. The Company plans to add new directors and is
currently reviewing candidates.
New Website
In other news, MEDT has secured a new corporate domain name.
Management intends to communicate directly with shareholders
through this website on a more regular basis. Please visit us at
www.medtcorp.com. Frequent updates will be forthcoming.
Annual Report and December 31, 2009 Financial
Statements
The recent sale of our MediaTechnics Systems, Inc. division has
had a substantial effect on our financial statements and the
Company is working diligently to complete its 2009 Annual Report
and December 31, 2009 Financial Statements in as timely a manner as
possible. Upon completion, the Report and Statements will be filed,
concurrently, on our website and on PinkSheets.com.
Notes about forward-looking statements
Except for any historical information contained herein, the
matters discussed in this press release contain forward-looking
statements that involve risks and uncertainties.
Certain Statements contained in this release that are not
historical facts constitute forward-looking statements, within the
meaning of the Private Securities Litigation Reform Act of 1995,
and are intended to be covered by the safe harbors created by that
Act. Reliance should not be placed on forward-looking statements
because they involve unknown risks, uncertainties and other
factors, which may cause actual results, performance or
achievements to differ materially from those expressed or
implied.
Forward-looking statements may be identified by words such as
"estimates," "anticipates," "projects," "plans," "expects,"
"intends," "believes," "may," "should" and similar expressions and
by the context in which they are used. Such statements are based
upon current expectations of the company and speak only as of the
date made. The Company undertakes no obligation to update any
forward-looking statements to reflect events or circumstances after
the date when they are made.
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