BREDA, Netherlands,
July 15, 2011 /PRNewswire/ --
Teleconnect, Inc. (TLCO.PK) announces that it is strongly
supporting the new law approved in Dutch Parliament imposing
stiffer sanctions to commercial establishments caught selling
alcohol to minors. Should the law receive final approval in the
Senate, Teleconnect's 100% owned affiliate, Hollandsche Exploitatie
Maatschappij BV (HEM) with its very effective age validation system
'Ageviewers', is ideally positioned to further expand its business
in the home market. The approval in Parliament has led to several
inquiries and the Company has privately placed shares in the Dutch
market at $1.50, raising $400,000 this week.
Background
Alcohol consumption at too early an age has developed into a
global problem over this past decade. The availability of alcohol
to minors is significantly enhanced by a lack of consistency and
the inherent inefficiencies in traditional methods of age
validation. With the Ageviewers system, age checks are no longer
performed by cashiers, but done systematically and from a remote
validation center. Without authorization from the center, there is
no way to register the sale of a product requiring an age check.
This approach has proved to make it virtually impossible for minors
to acquire alcohol or tobacco.
The system does not confront adults with the burden of having to
show identification. Also, it introduces the possibility of 100%
age compliance for the sale of alcohol and tobacco products at
self-scan checkouts.
Despite continuous education programs for cashiers and several
public campaigns directed to improve the traditional age check, a
recent study in the Netherlands
has evidenced that a minor, looking to buy alcohol spends, on
average, no more than 12 minutes concluding a successful purchase
attempt. The new law will authorize local authorities to close
alcohol departments of supermarkets that break the alcohol law
three times in one year. Since the traditional method of age
validation that is commonly used has been shown to be ineffective
in preventing sales to minors, most retail outlets that sell
alcohol will have to make effective a change in the age validation
system they currently use.
The news about approval by Dutch Parliament of the new law has
resulted in several inquiries to the Company. On the request of two
parties to purchase shares, both Dutch nationals representing Dutch
entities, the Company has completed a private placement in which a
total of 266,668 shares were sold at $1.50 per share to the two investors. The
placement is subject to the restrictions imposed pursuant to
Regulation S under the 1933 Act and all other provisions of the
1933 Act and the actual subscription agreement.
Small private placements are in line with the intentions of the
Company, published in its most recent quarterly filing for the
period ended March 31, 2011. Through
similar private placements the Company, rather than raising debt by
borrowing, believes it will be able to raise capital in order to
expand its activities, thus contributing to shareholder value while
maintaining sufficient cash flow. Given the interest generated in
the Netherlands this past week,
the Company believes that it will be able to enter into similar
agreements in the future with qualified local investors.
Teleconnect considers these first two placements, and the new
Dutch law, as important milestones in the Company's
development."
President's Message
"Dutch Government and members of Parliament expect that stiffer
sanctions along with increased local law enforcement will motivate
commercial establishments to adopt proven age validation systems.
We strongly believe in this view. Compliance will for many store
owners no longer be an option, but a matter of survival. Ageviewers
was tailored to solve this problem."
For more information on Hollandsche Exploitatie Maatschappij
BV please refer to www.ageviewers.com
For more information on Teleconnect, Inc., please refer to
the Over-the-Counter Markets with trading symbol TLCO.PK at the
following website: www.otcbb.com
Media Contact: Mr. Gustavo
Gomez
Email: ageviewers@gmail.com
Statements contained in this press release contain the
Company's, or its management's, expectations and assumptions
about future events, are forward-looking statements intended to be
covered by the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, and the results anticipated by any
or all of the forward-looking statements may not occur. In
addition, these statements are subject to risks and uncertainties
that could cause actual results to differ materially from those set
forth in, or implied by, these forward looking statements.
Factors that could affect those results include, but are not
limited to, those described in the Company's annual report on Form
10-K for the fiscal year ended September 30,
2009 as well as the Company's subsequent reports on Form
10-Q and Form 8-K, which have been, or will be, filed with the
Securities and Exchange Commission.
SOURCE Teleconnect, Inc.