XDM issues 8.3 mill shares to aquire RMG, last spring XDM paid a .02 dividend and the cash kept building up, not sure what it might be at Dec 2009 YE but they also where getting all their debt paid off, so now their cash heavy and doing aquisitions!!
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Xentel DM to acquire Responsive Marketing for shares
2010-02-25 09:42 ET - News Release
Mr. Michael Platz reports
XENTEL AND THE RESPONSIVE MARKETING GROUP ANNOUNCE PROPOSED MERGER
Xentel DM Inc. and the Responsive Marketing Group Inc. (RMG) are joining forces to form a new North American fundraising, specialty event and relationship marketing company.
The transaction is intended to be effected by the issuance from treasury of approximately 8.3 million Class A common shares of Xentel to the existing RMG shareholders, including 2062766 Ontario Ltd. and certain private RMG holders. Based on RMG's current and historical financial results, it is anticipated that RMG will contribute annually an additional two-cent earnings per fully diluted share and six cents earnings before interest, taxes, depreciation and amortization (EBITDA) per fully diluted share to the combined entity.
The agreement among Xentel, RMG and RMG's shareholders was entered into on Feb. 24, 2010. The agreement is subject to standard conditions precedent, the approval of the TSX Venture Exchange and the consent of holders of a majority of Xentel Class A common shares held by disinterested shareholders. It is anticipated that closing will be completed by March 5, 2010.
Michael Platz and Michael Davis will be co-chief executive officers of the combined entity.
Mr. Platz, chairman of Xentel, said: "This alliance opens new operational channels and, at the same time, complements our current businesses. During our due diligence, both companies recognized many synergies which should improve productivity and profitability."
Mr. Davis, CEO of RMG, noted, "RMG and Xentel will bring together the talents of two dominant forces in the not-for-profit relationship management, marketing and fundraising sector, allowing the combined entity to embark on new opportunities that individually would not have been possible, including the immediate ramp-up of operations when our clients desire."