Commercial Consolidators Corp. Executes Definitive Agreement To Acquire Leading Property Management System Software Developer.Business Editors TORONTO--(BUSINESS WIRE)--June 7, 2000 Commercial Consolidators Corp. (CDNX CDNX See Canadian Venture Exchange (CDNX). :CCZ CCZ Cyber Condition Zebra (Washington Naval Yard) CCZ Command and Control Zone CCZ Carlet-Charpin-Zinoviev (Equivalence Relation of Functions) .) {FRANKFURT:CJ9} announces that further to its press release dated March 29, 2000, it has successfully executed a definitive agreement to acquire a 100 per cent interest in La Societe Desig Inc. ("Desig"), a Montreal-based software developer and information technology company, which targets the hospitality sector. The purchase price is $11.6 million payable by way of issuance of 3.1 million shares at a deemed price of $3.75 per share, with one million shares to be held in escrow, to be released subject to certain earnings performance criteria. Employment agreements have also been executed with key management under the terms disclosed in the March 29, 2000 press release. All agreements remain subject to several conditions including regulatory approval. On closing, scheduled for July, 2000, Desig will operate as a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Commercial Consolidators Corp. The Desig acquisition provides Commercial Consolidators Corp. access to the rapidly expanding application service provider ("ASP") market and ensures it can provide a full suite of scaleable hotel property management system technology to its worldwide client base. "Our acquisition of Desig will allow Commercial Consolidators Corp. to penetrate new markets and access over 700 global locations serviced by Desig," stated Michael Weingarten, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Commercial Consolidators Corp. Traditionally, small to medium-sized hotel operators (properties with 20 - 200 rooms), were unable to match the technological investment of large-sized hotels in property management. By providing ASP software solutions and a pioneering portal hotel management system, Desig puts all properties on a level playing field See net neutrality. . Today, small and medium-sized hotel operators can use a property management system on an economical, per-use-basis without incurring the cost of purchasing, managing and upgrading in-house solutions. The current U.S. hospitality market spends approximately $3-billion on IT support 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. the American Hotel & Motel Association. Desig is the only Canadian company to provide scaleable, online property management services. Desig currently controls a 42 per cent market share in Eastern Canada Eastern Canada (also the Eastern provinces) is the region of Canada generally considered to be east of Manitoba, consisting of the following provinces:
"We are excited to partner with a dynamic company like Commercial Consolidators Corp. and look forward to leveraging our research and development, and internet software, to offer our customer base a complete turnkey solution," said Victor Noce, President and CEO of Desig. Desig is a leading worldwide developer and provider of Property Management Systems for all sizes of hotels and resorts, including hotel chains such as Delta Hotels, Best Western, Ramada ra·ma·da n. Southwestern U.S. 1. a. An open or semienclosed shelter roofed with brush or branches, designed especially to provide shade. b. An open porch or breezeway. 2. and Radisson. Based in Montreal, Quebec, Desig has over 700 property management systems installed in more than 24 countries, and has a 42 per cent market share in Eastern Canada. Desig has been ranked by Info Tech Magazine as having the second-highest growth potential for Quebec based information technology companies. Desig's American subsidiary, Central Point Technologies, conducts the company's sales, marketing, support and advanced technology to expand corporate operations throughout the United States, the Caribbean, Latin and South America. For more information please contact Investor Relations Investor relations The process by which the corporation communicates with its investors. at 1-800-968-1727 or 1-877-660-6146, or visit the Company's web site at www.commercialconsolidators.com. Also contact Desig's public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most firm National Public Relations, Briana Davis or Sara McCelland at (416) 586-0180 or bdavis@national.ca / smcclelland@national.ca ON BEHALF OF THE BOARD OF DIRECTORS Michael Weingarten The Canadian Venture Exchange The Canadian Venture Exchange (CDNX) is now a defunct stock exchange having been acquired by the TSX Group in 2001 and renamed the TSX Venture Exchange. History of the Canadian Venture Exchange (CDNX) has neither approved nor disapproved the information contained herein. |
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