|Page (1) of 1 - 05/24/12||email article||print page|
GameCorp Closes BPO Acquisition(May 24, 2012)
TORONTO, ONTARIO -- (Marketwire) -- 05/24/12 -- GameCorp Ltd. ("the Company") (CNSX:GGG)(PINKSHEETS:GAIMF) is pleased to confirm that the Company has closed its previously announced acquisition of 100% of OC Communications Group Inc. ("OCCGI"). OCCGI is a business process outsourcing ("BPO") company that has been in business for six years and provides outsourced services, such as call center, loyalty program administration, credit services, utility services, telecom and technical support, to a broad based clientele in both Canada and the United States. OCCGI operates out of state-of-the-art outsourcing facilities, headquartered in Toronto, Canada.
Mr. Graham Simmonds, Chairman and CEO of the Company stated, "This acquisition gives our company a clear path for growth and we are pleased that the entire OCCGI team including the founders will become part of the GGG executive team and will be instrumental in integrating the OCCGI business into ours." He added, "OCCGI has a very loyal base of existing customers and a pipeline of new business that will provide a solid foundation supporting our Company's business plan to expand revenues and profits."
Under the terms of the OCCGI acquisition agreement, the Company has issued one million common shares valued at $0.05 per common share and assumed a vendor-take-back loan of C$1.65 million secured by the common shares of OCCGI and owing to the OCCGI founders. The Company will not issue conditional performance shares as originally contemplated, however the Company will still honour the commitment to issue an additional two million of its common shares to the vendor conditional upon the OCCGI Earnings Before Interest Taxes Depreciation and Amortization ("EBITDA") for calendar year 2012 exceeding $1 million. While Mr. Graham Simmonds is a relative of the President and CEO of the vendor, the transaction was completed on an arms-length basis and was reviewed and recommended to the Board of Directors by Lead Independent Director, Mr. Henry Kloepper, and it was unanimously approved.
GameCorp Ltd. is a public company that trades under the symbol GGG on the Canadian National Stock Exchange and under the symbol GAIMF on the Pink Sheets of the Over the Counter Bulletin Board. In general, the Company is a merchant banking company that is opportunistic with its investment scope. The company has investments in mobile and gaming technology and has recently been investigating opportunities to invest in the mining and resource sectors. The Company has begun to broaden its focus into the BPO industry with the announced acquisition of OCCGI. The Company continues to look for investment opportunities and special situations as they arise.
ON BEHALF OF GAMECORP LTD.
For additional information please visit the Company's website at www.gamecorp.com or refer to www.sedar.com.
This press release contains certain forward-looking statements with respect to the Corporation. These forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect. These statements involve risks and uncertainties including, without limitation, GameCorp's ability to successfully develop and market its products, consumer acceptance of such products, competitive pressures relating to price reductions, new product introductions by third parties, technological innovations, and overall market conditions. Consequently, actual events and results in future periods may differ materially from those currently expected.
The Canadian National Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
Mr. Graham Simmonds
Chairman, President and Chief Executive Officer
Copyright @ Marketwire
Related Keywords: GameCorp Ltd. , Canada, USA, Toronto, Marketwire, Inc., , Business,