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MediaTechnics Acquires Air Transport Company, Projects Revenues of $2,000,000 Over Next 12 Months(October 21, 2011)
SCOTTSDALE, AZ -- (Marketwire) -- 10/21/11 -- MediaTechnics Corporation (PINKSHEETS: MEDT) is pleased to announce that it has acquired all of the assets and operations of LA Jet Setters ("LA Jet") through the purchase of all of the outstanding shares of a newly formed Nevada LLC, Noble Jets LLC (Noble). Noble was formed in order to effect the transaction as a tax-free exchange.
LA Jet is a privately owned air transport company operating internationally and based in Southern California. LA Jets counts among its customers many high value individuals, celebrities, foreign dignitaries and major international corporations.
LA Jet has stated that it had revenues in excess of $3,000,000 during the last twelve months and operated with a margin of approximately 12%.
The terms of the agreement call for the payment of 5 million MEDT common stock shares as well as MEDT preferred stock, with an agreed value of $900,000, convertible to 18,000,000 shares of MEDT common stock, after one year, and the satisfaction of all contract terms. Among those terms, Noble is contractually obligated to deliver a minimum of $2,000,000 in revenues over the next twelve months. However Noble expects to meet and exceed that goal during that period.
Noble expects that business already scheduled for the last two months of 2011 should generate revenues of approximately $500,000. Noble believes it will continue as a profitable enterprise under the auspices of MEDT and believes it can grow its revenues substantially over time.
Additionally, Noble is in the process of expanding its just-in-time airfreight brokerage business. This line of business has margins of 25% or greater. According to Noble, some of its customers need product delivered on an emergency basis and are often willing to pay Noble handsomely to meet those deadlines.
Management believes that the addition of revenue-generating lines of business, and the cash flow they generate, will help the Company meets its goals in all of the sectors it has interests in, significantly increasing shareholder value. Management intends the addition of Noble to be one of many accretive acquisitions of revenue-generating business it intends to complete in the near future.
In further news, the Company wishes to clarify that its purchase of Clean Energy Production Company last week was concluded under similar terms, with preferred stock that is convertible to Common at Five Cents ($0.05) per share as well, and the terms of that transaction also require specific milestones to be met before the preferred stock may be converted.
The Company remains in negotiations with other firms and intends to update shareholders as events warrant. The Company intends that all future acquisitions significantly increase shareholder value.
Finally, the company is currently preparing its September 30, 2011 Financial Statements and is in the process of selecting a pre-audit team to begin the process of becoming audited after Fiscal 2011 year end, and will seek a return to fully reporting status thereafter. The Company is considering several audit firms within the Metro-Phoenix area. The Company continues to seek capital pursuant to its previously announced offering and has received prospective commitments that require a return to SEC reporting status. The Company has received a commitment to fund its audit and any related filings.
Notes about forward-looking statements
Except for any historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties.
Certain Statements contained in this release that are not historical facts constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"), and it is the Company's intention and belief that all such statements are covered by the safe harbors created by the Act. Reliance should not be placed on forward-looking statements because they involve unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied.
Forward-looking statements may be identified by words such as "estimates," "anticipates," "projects," "plans," "expects," "intends," "believes," "may," "should" and similar expressions and by the context in which they are used. Such statements are based upon current expectations of the company and speak only as of the date made. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date when they are made.
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