TORONTO, ONTARIO--(Marketwired - Sept. 17, 2013) - Phonetime Inc. (the "Company") (TSX:PHD) is very pleased to announce that it has signed an asset purchase agreement for the acquisition by the Company of the software technology assets and operations of AGK Consulting, Inc. ("AGK"), a Florida-based company, which owns the software which the Company has been licensing and using since 2007 to operate its business. Management of the Company believes that the Company is now at a stage where it is important that it acquire and own this software to provide it control of the distribution of this software and technology into the market place.
The Company is also pleased to announce that it has signed an asset purchase agreement for the acquisition by the Company of the U.S. retail telecommunications business of Netel, Inc. ("Netel") a Florida-based company, which operates under the brand "Tel3". Management believes that the acquisition of Netel's business will provide the Company with various telecommunications platforms that, when combined with marketing plans, will allow the Company grow its telecommunications retail presence.
Each of the transactions is expected to close by October 31, 2013, subject to regulatory approval and approval of the shareholders of the Company and of each of AGK and Netel.
The Company's Chairman and CEO, Gary Clifford, commented, "We have worked hard over the last three years to build a strong core business under the Phonetime brand; it is now time to expand our business vision and to make Phonetime a brand within our expanding organization. We are very pleased that we will finally obtain ownership of the software and technology which is the heart and brains of our Phonetime business. We are also excited to be entering back in to the retail communications markets, Phonetime has a long history in this business, when combined with the Tel3 brand and platforms we expect that we will be able to make great things happen.
"Since taking over the business in 2010, our focus has been to put the business both operationally and financially on solid ground. This has been achieved. It is now time to leverage our strengths to bring the Company to the next level. Adopting a new identity that represents our vision of the future is part of that process. In addition to the purchases that we have made, we have also embarked upon two internal initiatives, the first being the launch of our Communications platform thru the brand "Route Dynamix" and the launch of our wireless initiative thru the brand "GoLifeTel".
Highlights of the transactions underlying the AGK Agreement and the Netel Agreement (the "Transactions") and certain related transactions include:
-- acquisition of the software assets of AGK in exchange for common shares
issued by the Company;
-- acquisition of the assets of Netel in exchange for common shares issued
by the Company;
-- a name change of the Company to "Tellza Communications Inc. upon
approval by shareholders;