CDC Systems Inc. Updates Press Releases.DALLAS Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. -- CDC See Control Data, century date change and Back Orifice. CDC - Control Data Corporation Systems Inc. (Pink Sheets:CPYJ), a Delaware corporation A Delaware corporation is a corporation chartered in the U.S. state of Delaware. Delaware is well known as a corporate haven, and thus, over 50% of US publicly-traded corporations and 58% of the Fortune 500 companies are incorporated in the state. (the "Company"), announced on Oct. 22, 2004 that it intended to review its prior press releases to determine their accuracy and completeness. In an ongoing effort to provide more complete information, the Company is issuing this updated press release. In a press release dated Sept. 28, 2004, the Company announced that in November 2004, it would begin receiving $1,114,000 in annual revenues from 55 compressors which have been designed to the CDC specifications and which according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. its press release dated Sept. 29, 2004, represents $4,100,000 in assets deployed in the field. To clarify, CDC entered into an Option Agreement on Sept. 28, 2004, to acquire a gas compression equipment company with primary 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 in New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). from a third party (the "Third Party"). Mr. David Ball David or Dave Ball may refer to:
Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. ongoing relationship with the owner of the Third Party and has worked extensively with the owner to develop the design specifications to which approximately 50 of the 55 compressor compressor, machine that decreases the volume of air or other gas by the application of pressure. Compressor types range from the simple hand pump and the piston-equipped compressor used to inflate tires to machines that use a rotating, bladed element to achieve systems adhere. The terms of the Option Agreement with the Third Party provide for a purchase price of $3,134,160 and the continued employment of its president/owner pursuant to a minimum two-year employment contract. The revenues and assets referenced in the Sept. 28, 2004 and Sept. 29, 2004, press releases are revenues and assets that would be generated from the 55 compressors. These revenues and assets would become revenues and assets of CDC upon the completion of the acquisition. Management is in the process of seeking debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay to complete this acquisition. In the event the Company is unsuccessful in obtaining the required financing, then it intends to attempt to renegotiate re·ne·go·ti·ate tr.v. re·ne·go·ti·at·ed, re·ne·go·ti·at·ing, re·ne·go·ti·ates 1. To negotiate anew. 2. To revise the terms of (a contract) so as to limit or regain excess profits gained by the contractor. the terms of the Option Agreement. Additionally, on Sept. 29, 2004, the Company announced that it had been approved for a $15,000,000 loan. To expand upon that press release, the terms of the loan require an advance escrow payment Escrow payment is the common term referring to the portion of a mortgage payment that is designated to pay for real property taxes and hazard insurance. It is an amount "over and above" the principal and interest portion of a mortgage payment. of $400,000. The loan provides for the funding to occur in three phases, with an initial funding of $7,000,000 and two subsequent potential draws of $4,000,000 each, with an interest rate of 6.5%, and up to a 10-year repayment schedule. The loan would be secured by the assets of CDC. The term sheet for the loan also reflects that the initial funding should occur during the week of Oct. 25, 2004. Management is currently evaluating this loan commitment and the proposed documents underlying the loan with outside counsel. Management is meeting this week with representatives of the lender regarding this transaction. The Company has not determined whether it will seek an extension on this loan commitment as it will not be completed this week, or whether it will pursue the funding of the loan or seek alternative financing. On Oct. 4, 2004, the Company announced that Seago Operating had decided to select CDC Systems to be their preferred natural gas compressor <includeonly></includeonly>A gas compressor is a mechanical device that increases the pressure of a gas by reducing its volume. Compression of a gas naturally increases its temperature. supplier, adding annual revenue potential of $350,000 for the Company. This press release also contained expected annual revenues rising to over $2,500,000. On Oct. 5, 2004, the Company announced an agreement with Strawn Oil under which Strawn Oil selected CDC as their preferred natural gas compressor supplier which would increase its expected annual revenues to $2,764,000. To clarify these press releases, the expected annual revenues are based partially upon the purchase of the Third Party and the completion of other CDC projects and agreements, which includes Seago Operating and Strawn Oil. Absent the completion of the acquisition or the completion of other CDC projects and agreements, the Company may not receive these total revenues. On Oct. 11, 2004, the Company announced that CDC Systems provides compressor systems that make low producing natural gas wells gain production increases from 40 to 90%, and, that in some cases, a 200% increase or larger had been achieved. To clarify, these increases are based partially upon the results from wells which have utilized compressors designed to meet CDC specifications which enable marginal (barely profitable) and non-profitable natural gas wells to produce more volume cost effectively and efficiently. Most of the compressor systems referenced in the Oct. 11, 2004 press release are owned/operated by the Third Party while some are owned by other independent gas compressor leasing companies. While the Company believes these gains in production can be achieved on other wells, no assurance can be given that other wells will achieve similar results. In a separate press release dated Oct. 11, 2004, the Company announced that it had been asked to start building 10 CDC L1-XL compressors which would ultimately add $426,000 in annual revenues. To clarify the press release, the Third Party engaged in discussions with representatives of several natural gas companies who expressed their need for 10 large compressors which meet CDC specifications and indicated a willingness to lease them if constructed. Any anticipated revenues for CDC would be received only upon the acquisition of the Third Party. On Oct. 14, 2004, the Company announced that David Ball would become V.P. of Operations as of Nov. 8, 2004. To expand upon this announcement, David Ball is the father of Shelby Ball, the Company's president. The Company is continuing to review its prior disclosures and may issue additional clarifying press releases if necessary to ensure the accuracy of the information available to the investing public. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. statement: This release contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ." Statements describing objectives or goals or the Company's future plans are also forward-looking statements and are subject to certain risks and uncertainties, including the financial performance of the Company, ability to obtain financing, the outcome of the current SEC inquiry and market valuations of its stock, which could cause actual results to differ materially from those anticipated. For more information about CDC Systems Inc. go to www.cdc-systems.com |
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion