NOVI, Mich., June 18, 2010 (GLOBE NEWSWIRE) -- Mount Knowledge Holdings, Inc. (OTCBB:MKHD) (the "Company"), an educational software development, sales and training company offering innovative and proprietary learning products and training services worldwide, today announced that, on April 26, 2010, it executed a non-binding Letter of Intent to acquire one hundred (100%) ownership of Mount Knowledge USA, Inc. ("MTKUSA") in a Stock Purchase and Share Exchange Agreement.
MTKUSA is a U.S. based sales and marketing company formed in September 2009 for the purposes of distributing Mount Knowledge™ products domestically and internationally to a variety of customers, including individuals, schools, government agencies, and corporations, primarily in China.
To date, MTKUSA has completed approximately $1,100,000 in new financing to support the current sales and marketing efforts in China.
On or about September 4, 2009, MTKUSA executed an agreement with Mount Knowledge, Inc. whereby it acquired, by assignment, the rights to the Sales Agency Agreement executed by Mount Knowledge, Inc. and Tianjin You He Trading Co., Ltd. on or about March 8, 2009 in exchange for warrants in MTKUSA.
This Sales Agency Agreement for China grants to Tianjin You He Trading Co., Ltd. the rights to distribute the Knowledge Generator™ product utilizing various traditional marketing methods, at Tianjin You He Trading Co., Ltd's expense, but with support from MtK, Inc., subsequently MTKUSA, to train initial personnel on product functionality, features, etc., and to assist in the creation of marketing, branding and product identity tools and sales and marketing strategy, as needed.
The Sales Agency Agreement is a five year, plus five year extended agreement, and was exempt from the exclusive Master Software License Agreement executed on January 21, 2010 between the Company and Mount Knowledge, Inc., which superseded the Master Software License Agreement executed on or before July 27, 2009. The Company had anticipated the acquisition of the same Sales Agency Agreement directly from Mount Knowledge, Inc. according to its business plan, but, was unable to raise the necessary financing in the past nine months to execute on the terms and conditions of the Sales Agency Agreement and associated sales efforts in China. The Company now has the opportunity to do so from the proposed acquisition of MTKUSA and at the same time capitalize on all the sales and marketing efforts of MTKUSA in China to date.
"This transaction begins the task of facilitating the business milestones proposed in the Company's business plan," stated Daniel A. Carr, President and CEO of Mount Knowledge Holdings, Inc. He continued, "By acquiring a business with existing operations in China consistent with our Company's business objectives, we can now accelerate new financings to propel our worldwide operations."
A definitive purchase agreement is anticipated to be completed on or before June 30, 2010. (Please refer to the Form 8k filed on April 27, 2010 for more information). However to date no definitive agreement has been entered into by the parties and it is possible that the companies will not finalize such agreement.
About Mount Knowledge USA, Inc.
Mount Knowledge, USA, Inc. is a privately-held Nevada corporation formed in September 2009. The Company was incorporated by Erwin Sniedzins of Mount Knowledge Inc. ("MtK, Inc."), a Canadian R&D Company, the founder and author of the Mount Knowledge™ learning products, as a marketing and sales company. The primary mission of MTKUSA is to market, sell and distribute a proprietary Real Time Self Learning System ("RTSL") software application referred to as the Knowledge Generator™ product, domestically and internationally to a variety of customers, including individuals, schools, government agencies, and corporations.
About Mount Knowledge Holdings Inc.
Mount Knowledge Holdings, Inc. (OTCBB:MKHD) is an educational software development, sales and training company offering innovative and proprietary "real-time self learning" software products and teaching services for both corporate and direct consumer markets worldwide. The Company's technology stems from an interactive and visual learning system referred to as "Syntality,"™ integrated into a core application known as the "Knowledge Generator,"™ and is currently being offered in China to the more than 300 million students from grade school to university seeking to learn English, and a vast number of people in the Chinese workplace increasing their English fluency to achieve greater income earning potential.
Forward-Looking Safe Harbor Statement:
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. By their nature, forward-looking statements and forecasts involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the near future. There are a number of factors that could cause actual results and developments to differ materially from forecasted results. These risks and uncertainties include our ability to: attract members; convert members into paying subscribers and retain our paying subscribers; our ability to successfully implement our current long-term growth strategy; as well as product demand, market competition, fluctuations in advertising payouts, reliance on credit card processors and related necessary merchant account approvals, delays in website & application development, technical issues beyond our control, reliance on the various platforms that we build applications on, and risks inherent in our operations. For a discussion of these risks and uncertainties, please see our filings with the Securities and Exchange Commission. Our public filings with the Commission are available from commercial document retrieval services and at the website maintained by the Commission at http://www.sec.gov.