LONDON, March 7, 2011 (GLOBE NEWSWIRE) -- First Corporation (OTCBB:FSTC) is pleased to report receipt of a letter dated March 4, 2011 from Roy Crothers, Director of Acquma Holdings Ltd. indicating that Acquma will use its best endeavors to close the acquisition of Acquma by First Corporation within 21 days of the date of the letter. Acquma expects to enter into an updated Share Exchange Agreement ("the New Agreement") on materially the same terms as the October 16, 2009 Agreement previously executed with Acquma Holdings Limited ("Acquma") subject to shareholder approval which Mr. Crothers' letter indicates will be forthcoming imminently.
On October 16, 2009, First Corporation, Acquma Holdings Limited ("Acquma"), and the shareholders of Acquma (the "Acquma Shareholders") entered into a Share Exchange Agreement (the "Exchange Agreement"). Pursuant to the terms of the Exchange Agreement, First Corporation was to acquire all of the issued and outstanding shares of Acquma from the Acquma Shareholders in exchange for an aggregate of 64,437,848 shares of First Corporation common stock (the "Acquisition Shares"). Upon closing of the Exchange Agreement, Acquma was to become a wholly-owned subsidiary of First Corporation.
The closing of the Exchange Agreement was delayed and pursuant to the terms therein the Exchange Agreement terminated February 28, 2010. It was thereafter extended by mutual agreement of the parties, but the term of such extension expired as well.
Acquma has been established to offer investment and management expertise to targeted technology companies and to firms offering unique services through the provision of their own technology. Acquma currently has a single investment being the ownership of 10.996 million shares, representing 18.3% of the shares in issue of Tramigo Limited ("Tramigo"). Tramigo sells and leases advanced telematic (GPS tracking combined with wireless communication) products to industrial and consumer markets. The products allow consumers to track the location and manage moveable assets through mobile phone technology. End users are notified when unexpected events such as a kidnapping, accident or break-in occur. Tramigo sells its products in more than 150 countries. During the last 12 months or so, Tramigo has made great strides in the development, sales and marketing of its Tramigo T22 Series products, expanding its distribution network and laying the foundations for significant growth. Further details of Tramigo can be found at www.tramigo.net
First Corporation CEO Andrew Clarke comments: "After prolonged negotiations and delays we are delighted that this deal is finally ready to complete. Tramigo's continued development through focus on product innovation and distribution to the world's fast growing emerging markets gives grounds for confidence that the New Agreement can potentially add significant value to First Corporation shareholders. All our focus is on completing the New Agreement in the very near future whilst remaining alert for other potential strategic alliances and/or investments in the technology sector."
About First Corporation
First Corporation was incorporated under the laws of the State of Colorado on December 27, 1995. The Company's activities to date have been limited to organization and capital formation.
About Acquma Holdings Ltd.
Acquma was established in February 2008. The Company has two distinct objectives: to allow the public to share in the innovative Tramigo technology, and to increase its capital base and share value through the acquisition of direct and strategic interests and investments in technology, medical research, environmental and emerging market property development.
Forward Looking Statement
This news release contains forward looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. Among others, these risks include the failure to meet schedule or performance requirements of the Company's contracts, the Company's liquidity position, the Company's ability to obtain new contracts, the emergence of competitors with greater financial resources, and the impact of competitive pricing. In the light of these uncertainties the forward-looking events referred to in this release might not occur.