Colmena Corp. Announces Proposed Telecommunications Acquisition.WESTLAKE, Ohio--(BUSINESS WIRE)--Aug. 20, 1998--Colmena Corp. (OTC/BB:CLME) Thursday announced that it has entered into a letter of intent to acquire Speedway Speedway, town (1990 pop. 13,092), Marion co., central Ind., just W of Indianapolis; inc. 1926. The Indianapolis Speedway, site of the annual Indianapolis 500 car race, is located there. There is also light manufacturing. Express Calling Inc. ("Speedway") through a wholly-owned subsidiary to be formed. The letter of intent provides for a purchase price of one share of the company's convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". . The preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. will be convertible, at the option of Speedway, into 20 percent of the outstanding stock of the subsidiary of the company into which Speedway is merged, or 1 million shares of the company's common stock. The Speedway stockholders will also be entitled to receive one additional share of preferred stock, with the same conversion features, subject to the Speedway business achieving pre-tax income of $3.5 million for the 12 month period following the closing of the acquisition. The Speedway acquisition is subject to the negotiation and execution of a definitive agreement between the parties. Speedway has instituted a program aimed at the No. 1 spectator sport in the world, auto racing. Speedway provides voice mail service combined with monthly premiums including, but not limited to, a magazine subscription for Speedway's own monthly racing magazine, Inside Racing. Richard C. Peplin Jr., president of the company, stated that, "(T)he initial test marketing results have been extremely favorable and the company plans to aggressively grow the Speedway program." The company, through its wholly-owned subsidiaries T2U T2U Transition to University (University of Alberta; Canada) Co., TechTel Communications Inc. and Business Technology Systems Inc., operates as a provider of long-distance block time primarily to residential users, and as a reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. of computer hardware and related services and equipment, and a provider of local phone services in the states of California, Florida and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . Colmena Corp. common stock trades on the OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. under the symbol CLME. For further information, contact Richard C. Peplin Jr. at 440/871-5000.
CONTACT: Colmena Corp., Westlake
Richard C. Peplin Jr., 440/871-5000
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