RALEIGH, N.C., Jan. 25, 2007 (PRIME NEWSWIRE) -- Organetix, Inc. (OTCBB:OGTX) today announced the execution of a definitive agreement to acquire ADAO Telecom, Inc., privately held Florida corporation (the "Company" or "ADAO"). ADAO is a telephony engineering and design firm specializing in the development of affordable, yet technologically advanced cellular phones that target the low-end user market segment. ADAO's global commercialization strategy focuses on large retail based orders aimed at capturing significant market share in a fast growing niche within the industry. ADAO expects to complete its proprietary prototype within 120 days at an approximate cost of $300,000 and anticipates the commencement of commercialization by 4th calendar quarter 2007.
Commenting of the ADAO transaction, Organetix CEO Dr. David Hostelley stated, "We are pleased to acquire ADAO and believe that the Company has positioned itself for significant growth in a large niche market. Management believes that the ADAO business represents a better opportunity for our shareholders than that of Volius, Inc. At the closing of the transaction, the management of privately held ADAO Telecom will assume the officer and director positions of Organetix ("the Shell Company")."
ADAO Chief Executive Ed Holmes, expressed, "We are very excited about this transaction and our ability to raise capital from the public markets. We believe our business model is sound and we will work hard towards achieving our business objectives and creating shareholder value. Our management team has great experience in both engineering electronic devices and marketing products to the cellular sector. We have a significant market opportunity ahead of us and we look forward to capitalizing on it in the short, intermediate, and long terms."
The closing of the acquisition of ADAO by Organetix is conditioned (amongst other things) upon the successful completion by ADAO of its proprietary cellular prototype and audited financials in compliance with the requirements of the Federal Securities Laws. The combined Company will formally change its name to ADAO Wireless, Inc. and anticipates a symbol change to better reflect the change in business model. Closing is expected as early as 2nd calendar quarter of 2007.
During discussions with Volius, it became apparent to both Volius and Organetix that it would be difficult, if not impossible, to agree on the amount of capital to be raised, the valuation of Volius and the timing of the ultimate transaction. Also during that period, we were introduced to ADAO and concluded that ADAO was a better fit with shareholders' goals of acquiring a business with dynamic opportunities. On January 18, 2007, we terminated our Letter of Intent to merge with Volius. However, we wish Volius, Inc. success in its future business initiatives.
About ADAO
ADAO Telecom, Inc. is a telephony engineering and design firm specializing in the development of cellular technologies that target the low end user market. For more information please visit the corporate website at www.adaotele.com
Disclaimer
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may include the description of our plans and objectives for future operations, assumptions underlying such plans and objectives, statements regarding benefits of the proposed acquisition and other forward-looking terminology such as "may," "expects," "believes," "anticipates," "intends," "projects" or similar terms, variations of such terms or the negative of such terms. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. Such information is based upon various assumptions made by, and expectations of, our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to significant economic and competitive uncertainties and contingencies beyond our control and upon assumptions with respect to the future business decisions which are subject to change. Accordingly, there can be no assurance that actual results will meet expectations and actual results may vary (perhaps materially) from certain of the results anticipated herein.