goog luck all12 Jul 2010 09:23
12 July 2010
Vyke Communications plc
("Vyke")
Joint Venture Agreement and Warrant Instrument
· Joint Venture Agreement to accelerate growth and development
· Access to market and sell services to new customers
· Expand Vyke in the US
· Joint Venture Agreement provides partner a target of generating US$100 million of new revenues for Vyke in first year and EBITDA in excess of US$1.5 million
· Warrant Instrument will result in partner being issued with Vyke shares based on revenue and EBITDA performance levels
· Additional board members to be appointed from partner in due course
The Board of Vyke Communications plc (AIM: VYKE) is pleased to announce that Vyke has entered into a joint venture agreement with Bonjour Europe Limited, a wholly owned UK subsidiary of BLS TEL Holdings LLC, and its affiliates ("Bonjour") relating to the future operations of Vyke (the "Joint Venture Agreement") together with a Warrant Instrument (as defined below) (together the "Agreements"). The Agreements are conditional upon, amongst other things, Vyke's shareholder approval and a circular to Vyke's shareholders will be sent out over the next few days.
Bonjour is part of a group of companies which provide telecommunication products and services across the globe, focusing on the emerging US and international markets for mobile and international calling, managing over one billion minutes annually. The Bonjour group currently has carrier, mobile and distribution operations in the US and Africa and is expanding its reach to Europe through the Joint Venture Agreement. Bonjour intends to use its relationships and market position to expand the reach of the Vyke technology and products and services. More information on BLS TEL Holdings LLC can be found at http://www.blstel.com/index.html.
The Board of Vyke considers the transaction with Bonjour to be a unique opportunity for Vyke to accelerate its growth and development in existing and new markets. The management team of Bonjour and its affiliates have considerable experience in running telecoms companies both in the US and worldwide and the Board of Vyke believes that, in time, a number of synergies and cost saving measures will be identified and implemented as a result of the relationship.
As described below, the Board of Vyke is optimistic about the transaction with Bonjour and have been able to structure it in such a way that Bonjour is rewarded only upon performance and delivery set out below.
The Joint Venture Agreement provides, inter alia, that Bonjour will utilise its relationships and its experience to assist Vyke with management of its operations and the generation of new synergistic and complimentary revenue streams for Vyke. The Joint Venture Agreement provides Bonjour with a target of generating US$100 million of rev