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GameCorp Updates Acquisition Plans(April 26, 2012)
TORONTO, ONTARIO -- (Marketwire) -- 04/26/12 -- GameCorp Ltd. ("the Company") (CNSX:GGG)(PINKSHEETS:GAIMF) is providing an update to its planned acquisition of OC Communications Group Inc. ("OCCGI") and a Joint-Venture and License with a Toronto-based direct sales company ("JV") for the sale and finance of home energy products. OCCGI is a business process outsourcing ("BPO") company that has been in business for 6 years and provides outsourced services, such as call center outsourcing, to a strong clientele both in Canada and the United States.
The terms of the OCCGI acquisition agreement mostly remain the same and the Company will issue one million common shares and assume a vendor-take-back loan of $1.65 million secured by the common shares of OCCGI and owing to the previous shareholders of OCCGI. The Company will not issue conditional performance shares as originally contemplated, however the Company will still honor the commitment to issue an additional two million of its common shares to the vendor upon the OCCGI Earnings Before Interest Taxes Depreciation and Amortization ("EBITDA") for calendar year 2012 exceeding $1 million. The Company will also complete the debt settlement agreement as originally contemplated with the secured lender to OCCGI to settle $625 thousand in liabilities. This will be settled for the issuance of two million common shares of the Company and the assumption of $300 thousand dollars in third party debt.
GameCorp has determined it will not complete the previously contemplated acquisition of the Joint-Venture and License with a Toronto-based direct sales company for the sale and finance of home energy products. The Company will be announcing an alternative business development strategy for this industry sector and management believes that the OCCGI BPO platform can be used for organize growth of this business unit.
Closing of the transactions described herein will occur imminently and the required regulatory and exchange filings are being processed. 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 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
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