Brown Disc Products Co. Inc. makes announcement.COLORADO SPRINGS Colorado Springs, city (1990 pop. 281,140), seat of El Paso co., central Colo., on Monument and Fountain creeks, at the foot of Pikes Peak; inc. 1886. It is a year-round resort and a booming military, technological, and commercial city. , Colo.--(BUSINESS WIRE)--Sept. 16, 1996--Brown Disc Products Co. Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :BDPC) today reported that its previously announced agreement and plan of reorganization for a proposed merger with Kimbrough Computer Sales Inc., 3SI Inc., otherwise known as Solution, System and Service Integration ("3SI"), expired on Sept. 15, 1996, without a closing of the proposed merger. As previously indicated in filings with the Securities and Exchange Commission, the proposed merger of 3SI and the company was subject to completion or waiver of various conditions precedent including, among others, additional common stock equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. in an amount of approximately $4.4 million, satisfactory completion of due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. investigation and completion of 3SI audited financial statements. Ronald H. Cole, the company's chief executive officer, stated: "These conditions have not all been met and negotiations with prospective investors to obtain $4.4 million in additional equity financing have not been successful. Discussions with 3SI late last week have led us to conclude that it does not appear 3SI and the company can agree to terms that would permit the proposed merger to be restructured or for the agreement to be extended on mutually acceptable terms." Cole further noted that with the expiration of the reorganization agreement, the company is required to surrender its interest in 3SI's Diamond Shield system developed for Internet security ''This article or section is being rewritten at Internet security is the process of protecting data and privacy of devices connected to internet from information robbery, hacking, malware infection and unwanted software. solution so that 3SI may continue to pursue development of that project with financing from other sources. Cole indicated that: "Although the company is disappointed it cannot complete the proposed 3SI merger, Brown Disc Products will continue to pursue a business strategy of seeking the acquisition of additional assets or business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets that enhance profitability and will continue to focus on our electronic software distribution strategy via the Internet and cable. Brown Disc will target acquisitions that complement the electronic distribution strategy and the company has cut operating costs operating costs npl → gastos mpl operacionales to the point that the company will be able to explore those opportunities." Brown Disc Products Co. is engaged in the business of marketing magnetic data storage products for computers and the duplication and packaging of software media for various software developers. CONTACT: Brown Disc Products Co. Inc. Ronald H. Cole, 719/593-1015 rcole@ix.netcom.com |
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