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DVBS' Spin-Off Venture Successfully Completes Initial Financing.

Business Editors/High-Tech Writers

LOS ANGELES--(BUSINESS WIRE)--Jan. 31, 2000

Digital Video Broadcast Systems Inc. (NQB:IMVC), announced this week that Interactive Multimedia Advertising Inc. (&uot;IMA&uot;), has successfully completed its initial round of funding. Texas-based IMA is DVBS' first spin-off venture from its Business Development Division.

IMA provides a service that combines the stability of traditional print advertising with the dynamism of today's e-commerce marketing. The innovative streaming audio and video technologies of DVBS give IMA a solid advantage in this highly competitive industry. Barnett's Harley Davidson and El Paso ReMax Realty have already been secured as clients.

The financing was achieved when Raystar Enterprises Ltd., a publicly listed company on the Canadian Venture Exchange (V.RYA), acquired all issued and outstanding shares of IMA, on Jan. 7, 2000. Raystar issued 1,600,000 common shares to the shareholders of IMA at a deemed price of (CAN)$.25 per share. These are subject to escrow restrictions in accordance with the terms of an escrow agreement entered into among Raystar, IMA's shareholders, and the registrar and transfer agency (Haywood Securities). These shares will be released from escrow based upon the cash flow performance of IMA. The acquisition of IMA served as Raystar's qualifying transaction as a venture capital pool company, under the policies of the Vancouver Stock Exchange (now under the Canadian Venture Exchange).

Raystar also completed a private placement of 2,000,000 units at a price of (CAN)$.52 per unit, with Haywood serving as selling agent to raise gross proceeds of (CAN)$1,040,000.

Hal Hemmerich, Raystar president/CEO, has been appointed to the Board of Directors of IMA, which is also comprised of Michael Carlin (IMA president/CEO), Michael Meyer, and Lisa Hardesty.

Interactive Multi-Media Advertising plans to use its strong cash flow position to: expand its publishing operations, continue development of its website and database, broaden its client base, and expand operations into other North American cities.

IMA has a Publications Division and a Web Site Division. According to public statements released by Barnett's Harley Davidson, the dealership's Web site is already experiencing over one million users per month and producing an average of US$1 million per month in gross revenues.

Digital Video Broadcast Systems Inc. is a wholly-owned subsidiary of Imporex Investments Corp. (NQB:IMVC). Its mission is to develop communication technologies that improve voice, data, image transmission, and reception over the Internet, and on private and commercial Intranets. Among the Company's market-ready innovations are the AfterBurner(tm) web server, the LiveCam(tm) streaming video solution, the SDSN(tm) distributed server protocols, and the U2U(tm) video-conferencing system. These products are designed to promote multimedia convergence by overcoming current Internet constraints in bandwidth availability and routing efficiency, especially as applied to the transmission of high-quality video and audio content.

The DVBS technical team is based in the Silicon Valley, Calif. Management, marketing, and administrative offices are located in Los Angeles; Seattle; Vancouver and Toronto, Canada; and Seoul, Korea. Detailed information on DVBS and its technologies can be found at www.videotechnology.com

Further investment information on DVBS can be obtained by contacting:

Vortex Capital Corp. at 888/883-1747 or Coffin Communications Group at 818/789-0100.

Statements included within this press release that are not historical in nature constitute forward-looking statements for the purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Investors are cautioned that this press release contains certain such forward-looking statements that involve substantial risks and uncertainties. When used, the words &uot;anticipate,&uot; &uot;believe,&uot; &uot;estimate,&uot; &uot;expect,&uot; and similar expressions as they relate to the Company or its management are intended to identify such forward-looking statements. The Company's results, performance or achievements could differ materially from the results expressed in, or implied by, these forward-looking statements. There can be no assurance that the Company will be able to market, sell and deliver successful its services outside the United States, given risk factors including but not limited to unexpected changes in regulatory requirements, export restrictions, tariffs and other trade barriers, challenges in staffing and managing foreign operations, differing technology standards, employment laws and practices in foreign countries, longer payment cycles, problems in collecting accounts receivable, political instability, fluctuations in currency exchange rates, imposition of currently exchange controls, seasonal reductions in business activity and potentially adverse tax consequences, any of which could adversely affect the Company's international operations. There can be no assurance that one or more of these factors will not have a material adverse affect on the Company's current or future international operations and consequently, on the Company's business, results of operations, and financial condition.
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Publication:Business Wire
Date:Jan 31, 2000
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