BOCA RATON, Fla., Aug. 10, 2004 (PRIMEZONE) -- DirectView, Inc. (OTCBB:DRVW) announced today that it has signed an agreement with a private investment company for the purchase by the investment company of approximately $2,360,000 worth of DirectView's restricted common shares in exchange for shares of the investment company.
The investment company is a newly formed London-based company that has applied for its shares to be admitted to trading on the London stock exchange as an investment trust. The investment company has been established specifically to invest in US micro cap companies with long term growth potential. The investment company expects its shares to be trading on the London Stock Exchange by September 30, 2004.
Commenting on the agreement Michael Perry, CEO of DirectView stated, "We are very excited about this transaction as it will enable us to continue to re grow our business as well as to invest in the completion and launch of our proprietary streaming software. This type of infusion, when completed, will enable us to aggressively pursue new business as well as accelerate our delivery schedules which should help us to quickly improve our revenues and business outlook."
The investment company has entered into a "lock-up" agreement with DirectView, Inc., pursuant to which it has agreed not to trade the DirectView, Inc. shares it will receive as a result of this transaction for a period of two years from the closing date. In full payment for the shares of DirectView, Inc., the investment company will issue to DirectView, Inc. USD $2.36 million equivalent of its shares at a price per share valued at One Pound Sterling.
Fifty percent of the investment company's shares will be held in escrow for two years following their issuance and in the event the per share market price of the DirectView, Inc. common stock at such time is less than the per share value of the DirectView, Inc. stock at the time of the closing, the investment company shall be entitled to receive out of escrow a percentage of the shares equal to the percentage of such decline. The remaining shares held in escrow shall be released to DirectView, Inc. at such time. The closing of this transaction is subject to certain contingencies, including the listing of the investment company shares on the London Stock Exchange on or before September 30, 2004.
About DirectView, Inc.
DirectView Inc. (www.DirectViewInc.com) is a full-service provider of high-quality, cost efficient videoconferencing technologies and services. DirectView provides multipoint videoconferencing, network integration services, custom room design, staffing, document conferencing and IP / Webconferencing services to businesses and organizations in the United States and around the world. DirectView conferencing services enable our clients to cost-effectively, instantaneously conduct remote meetings by linking participants in geographically dispersed locations.
This announcement contains forward-looking statements that involve risks and uncertainties, including those relating to the Company's ability to grow its business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, full completion with the investment company, among others, the company's limited operating history, the limited financial resources, domestic or global economic conditions -- especially those relating to China, activities of competitors and the presence of new or additional competition, and changes in Federal or State laws, restrictions and regulations on doing business in a foreign country, in particular China, and conditions of equity markets. More information about the potential factors that could affect the company's business and financial results is included in the Company's filings, available via the United States Securities & Exchange Commission.