Valdor Acquires Assets of VideoWare, Inc.
October 30, 2013 – Vancouver, B.C.Valdor Technology International Inc. (“Valdor”) (TSX: VTI-V) is pleased to report that Valdor has entered into a Binding Letter of Intent (the “LOI”) for the acquisition of all of the business and assets of VideoWare, Inc. (“VideoWare”), a wholly owned subsidiary of ViewCast.com, Inc. (“ViewCast”), of Grapevine, Texas.
Under the terms and conditions of the LOI, an Asset Purchase Agreement (the “Agreement”) will be prepared whereby Valdor will pay to VideoWare a total of US$1,250,000 (the “Purchase Price”) of which US$1,000,000 will be paid on or before the target closing date of December 2, 2013 and an additional US$250,000 will be paid on or before 60 days thereafter. A 7% royalty will be paid to ViewCast on gross sales from the VideoWare business to a maximum of US$1,750,000 over a five year period. Completion of the Agreement will be subject to: 1) the completion of due diligence by each party to the terms and conditions related to and defined in the Agreement; 2) the completion of a financing by Valdor; 3) the receipt of all requisite TSX Venture Exchange approvals and/or consents and; 4) the approval by the Boards of Directors of all parties to the Agreement. Valdor intends to fund the acquisition of the VideoWare business and its assets through a combination of debenture and equity financing. Specific details of the funding will be announced in a future news release. All information contained in this news release relating to VideoWare and its business and operations is based on information provided to Valdor by VideoWare.
The future of television is streaming video and the Directors and Management of Valdor believe that now is the time to enter this compelling business sector. In addition to the price versus value argument supporting Valdor making this acquisition: 1) the streaming video industry is converting to fibre optics; 2) the same customers of this acquisition company are a market for fibre optic components, unrelated to their video streaming and; 3) management of the company, that will be part of the acquisition, has significant experience and contacts in the fibre optics industry, within North America.