old "but new news too this site"SAGE-- Solomon Alliance Group, Inc. Acquires DRN, LLC; Enters Into Agreement For Up To $10,000,000 Of Equity Financing
via CDS
Jan 3, 2001 6:35:30 AM
Solomon Alliance Group,
Inc. (OTCBB:SAGE) today announced that it has acquired DRN, LLC, an
operating company that supplies equipment and services for
telecommunications projects in numerous countries.
In addition, Solomon announced that it has entered into a Letter
of Agreement for a minimum of $5 million equity financing with an
option for an additional $5 million from IFG Private Equity, LLC, an
Atlanta-based institutional investor.
DRN Subsidiary of Solomon
As announced by Solomon in a prior press release, DRN deals in
communications equipment used for fiber, satellite, and wireless
communications. Products sold include multiplexing equipment,
satellite modems and transceivers, DSL modems, routers, T1 channel
banks, CSU/DSU, custom cabling solutions, VSAT equipment and call
supervision equipment.
DRN enjoys competitive pricing from its vendors, including
Phillips Communications & Equipment, Verestar, RevCom, Kent Datacomm,
PairGain/ADC and Cisco Systems.
DRN acts as the procurement and sales agent for Denwa
Communications, Inc., a multinational firm that acts as a principal or
manager of telecommunications projects in over 20 countries. Denwa has
entered into a Strategic Alliance Agreement with Solomon.
DRN acts as a reseller offering competitive pricing to fulfill
individual project needs for global network deployments, and functions
as a key member of the 'turn-key' systems integration team for each
project by supplying the necessary equipment with professional
installation and turn-up services.
DRN has recently expanded its services to include VSAT and
technical installation and repair services for satellite Earth
Stations and other systems.
Equity Financing
Under the terms of a Letter of Agreement for an equity line
executed with the Solomon Group on December 30, 2000, IFG Private
Equity, LLC has agreed to purchase from Solomon up to $10 million of
Solomon's common stock over the next 36-month period. Solomon has
structured this agreement to operate similar to a line of credit,
allowing Solomon to draw upon funds periodically when and if desired.
The funding is subject to certain items including completion of
due diligence and finalization of documents. Solomon intends to
utilize this financing to provide resources for an aggressive
expansion of the revenue-generating activities of DRN and to provide
funding for future acquisitions and operations of the Company.
Tom Weston, President & CEO of Solomon Alliance Group, Inc.,
stated, 'We are very pleased that we were successful in completing the
acquisition of DRN on the 29th of December 2000. While we are firmly
convinced that the acquisition of DRN is of great strategic importance
to the Company, regardless of date of purchase, we believe that our
completion of the transaction prior to year end will provide
additional benefits to our shareholders.'
Mr. Weston explained, 'Because our Annual Report for 2000 will now
include DRN's revenues of approximately $1,500,000, we anticipate that
future investors, shareholders and acquisition candidates will more
favorably assess Solomon's future growth plans and its valuation when
performing their due diligence review of the Company.'
'Our goal has been for Solomon to become a premier wireless data
solutions provider and to expand into other segments of the
telecommunications industry through selected acquisitions and joint
ventures,' Mr. Weston continued.
'As we have indicated in the past, we have been reviewing a number
of potential business combinations and relationships since becoming an
SEC reporting company in early 2000. One of our principal objectives
has been to leverage the value-added benefits of each new relationship
in order to take advantage of the resulting synergy between the
companies. Through its Master Purchase Agreement with Global Wireless
Data, Solomon currently has the capability to deliver a large
selection of wireless modems, devices and applications. Recently
Solomon has taken action to expand its potential sales capabilities.
The acquisition of DRN adds a strategic 'land-based' component to
Solomon's planned 'comprehensive wireless solution' by providing a
broad range of fiber, satellite, and wireless communications equipment
and installation services.'
Mr. Weston added, 'We will continue our policy of considering
transactions only if they are likely to increase revenue or assets and
if they are likely to complement and leverage Solomon's existing or
planned activities. We believe that this approach is consistent with
our objectives of qualifying Solomon for trading on the NASDAQ
SmallCap and maximizing valuation per share for our shareholders based
on both a financial statement and a going concern analysis.'
Shareholders are requested to refrain from contacting any of the
parties indicated herein. Unauthorized contact is detrimental to
Solomon's business activities. Further information on Denwa
Communications, Inc. is available by visiting their web site
Website://www.denwa.com.
Further information on Solomon Alliance Group, Inc. is available
by contacting Barry Labell of Investor Communications Company at
800/550-5165 or by visiting their Web site Website://www.iccinfo.com.
Please register at the ICC Web site to receive current information and
press releases on Solomon Alliance Group, Inc.
This news release may contain certain 'forward-looking statements'
within the meaning of the Securities Exchange Act of 1934, as amended.
All statements, other than statements of historical fact, included in
this release, including, without limitation, statements regarding
future plans and objectives of Solomon are forward-looking statements
that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ materially
from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from the Company's expectations are disclosed under the
heading 'Risk Factors' and elsewhere in documents filed from time to
time with the Securities and Exchange Commission and other regulatory
authorities.
The Securities and Exchange Commission has not reviewed this
release and does not accept responsibility for the adequacy or
accuracy of this news release.
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CONTACT: Solomon Alliance Group