REDONDO BEACH, Calif., Feb. 15, 2005 (PRIMEZONE) -- CorpHQ Inc. (Pink Sheets:COHQ) today announced that after more than seventy-five days of postponed meetings and delays, Axium Technologies Inc., f/k/a World Wide Eyes, Inc. ("WWE") has terminated merger discussions with Safeguard Technology International, Inc. ("STI"), a CorpHQ portfolio company.
CorpHQ had previously announced, on October 21, 2004, the execution of a non-binding letter of intent for a three-way merger between STI, WWE and Digital Video Technologies Inc. ("DVT").
Robert Perea, President of Safeguard commented, "We were recently contacted by DVT stating that they had been unable to complete a due diligence examination of WWE, because of problems with its accounting and financial position. They further explained that WWE had been recapitalized, was now 90% owned by the former DVT management team, and had changed its name to Axium Technologies ("Axium"). As a result of these recent developments, WWE informed us they were now terminating merger discussions with Safeguard."
In a letter to CorpHQ, Mr. Ron White, COO of Axium stated, "While we are not in a position to continue with the merger or the equity financing as previously contemplated, we remain committed to building upon the relationship that we enjoy with each of your companies. We will redouble our efforts to remain your technology supplier of choice . . . "
Perea added, "Safeguard will continue on with its on-going plan of organic growth while it reviews other acquisition and merger activities."
In the wake of the termination of merger discussions, CorpHQ called a series of meetings that were recently held in London, UK between CorpHQ and the Minority Shareholders Committee ("MSC") of Safeguard. The meetings focused on strategies for achieving liquidity and return on investment for all Safeguard shareholders. In attendance were shareholders holding, in aggregate, over 77% of the voting stock of Safeguard. This collaborative effort raised a number of important issues for all Safeguard shareholders, which are now being addressed by the two parties.
1. Safeguard Management is to formally seek proposals from financial
intermediaries and investment banks for bringing Safeguard to the
OTC market during 2005; and
2. the Annual Meetings of Safeguard's shareholders, and its Board of
Directors, are to be scheduled for the Spring of 2005.
As an incubator of promising emerging companies, CorpHQ will continue to seek to assist Safeguard and its management to create value for the corporation and its shareholders. Further information will be released as it becomes available over the course of the coming weeks.
About CorpHQ, Inc.
CorpHQ Inc. is a business incubator and holding company that enables startup and emerging companies throughout the world, realize and achieve their full potential by organizing, investing in, and providing comprehensive management support and business resources. CorpHQ acquires interests in, and provides consultation to, high-potential companies that are synergistic with its portfolio companies.
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