Streaming Video Acquisition Receives Approval
February 21, 2014 – Vancouver, B.C.The Board of Directors of Valdor Technology International Inc. (“Valdor”) (TSX: VTI-V) (OTC: VTIFF) is pleased to report that Valdor has received approvals from the TSX-V for the acquisition of the business and all the assets of VideoWare, Inc. (“VideoWare”), a wholly owned subsidiary of ViewCast.com, Inc. (“ViewCast”), located in Grapevine, Texas. VideoWare has been in business for eight years and revenue for the calendar year ending, December 2013, was in excess of US$1,800,000.
Valdor acquires the business and assets of VideoWare with payment of US$500,000 following receipt of TSX-V approval. An additional payment of US$600,000 is secured by a promissory note to be paid by March 21, 2014. A 7% royalty on gross sales from the VideoWare business will be paid to ViewCast over a five year period, to a maximum of US$1,750,000. Valdor is funding the acquisition of the VideoWare business and assets through a combination of debenture and equity financing. (Please see Valdor news release dated January 29, 2014.)
Mr. Elston Johnston, Chairman-of-the-Board/Director, states: “We are acquiring an asset that is in a great business sector and that has industry leading product lines. In addition to a business in its growth mode, we are acquiring a strong, experienced and motivated management team. We are confident we have both the team and product lines to aggressively grow this business. Our new portable GoStream line is in high demand and we are just now beginning to deploy it.”
About VideoWare: VideoWare is in the streaming media industry and markets the Niagara and GoStream product lines, internationally. There are four patents associated with these product lines. Streaming video is the future of television and Valdor management believes 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 fiber optics; 2) the VideoWare customers are a market for fiber optic components, unrelated to their video streaming and; 3) VideoWare management, that are part of the acquisition, has significant experience and contacts in the fiber optics industry.