A preliminary, non-binding, Letter of Intent, signed by both companies, calls for a closing of the transaction by the end of March. The transaction is subject to successful completion of due diligence by Western and to Western Board of Directors' approval. Western's acquisition will be made with stock. Terms were not disclosed.
GI Tech provides Internet sales and marketing for Hewlett Packard plotters, which are sold to engineering firms and the engineering departments of municipalities. New York City recently became a plotter customer. GI Tech is a Hewlett Packard VIP Partner.
GI Tech also provides Internet and web services for radio stations and has entered into provider relationships with radio stations in the Clear Channel Communications network. GI Tech receives a substantial portion of Internet revenue through the radio / Internet advertising partnerships.
In addition to the growing commercial alliances with Hewlett Packard and Clear Channel, GI Tech is in discussions that are expected to lead to similar relationships with other businesses.
GI Tech has also formed three start-up retail dot com companies providing Internet presence for manufacturers. These companies are: Artorder.com, which offers a complete on-line art supply superstore with over 20,000 products; Russbears.com, which features high quality stuffed animals by Russ Berrie; and, Tiffanyclassics.com, which offers hand-crafted classic and contemporary lighting. These businesses feature an e-commerce web portal software package developed by GI Tech.
For Western, GI Tech brings a group of promising businesses, a revenue stream, and technical expertise. For GI Tech, Western offers senior management and business skills, as well as the ability to attract and retain top quality technical people.
Western maintains offices in Denver and Los Angeles. It will file a SEC Form 10 this spring. It has over 750 shareholders and 5 market-makers.
Disclaimer
This news release contains information that is ``forward-looking'' in that it describes events and conditions, which Western Energy, Inc. reasonably expects to occur in the future. Expectations for the future performance of the business of Western Energy, Inc. is dependent on a number of factors, and there can be no assurance that Western Energy, Inc. will achieve the results as contemplated herein. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks including the possibility that the described transaction will not be completed.
SOURCE: Western Energy, Inc.