TORONTO, July 18, 2005 (PRIMEZONE) -- ActiveCore Technologies, Inc. (OTCBB:ATVE) is pleased to announce that as a result of its restructured investment in ePocket Inc. ("ePocket"), a private Ontario corporation, the Company will receive a one-time cash payment of approximately $250,000 and an equity interest of approximately 0.5% in the continuing entity.
In September 2003, ActiveCore purchased an equity interest in ePocket and for the past year has had an active role in arranging financing and the commercialization of the ePocket technology. ePocket has developed a breakthrough micro-payment technology and is a leader in producing software technologies that facilitate payments of electronic cash over the Web in a cost effective manner without the use of credit cards. ePocket turns everyone's PC, PDA and mobile phone into their own personalized ATM machine. ePocket is the fastest, most secure, lowest cost, and most profitable payment technology ever devised. It is the next generation of credit card networks, cash, checks and debit, all rolled into one, while eliminating identity theft and fraud, and drastically reduces operational costs.
Tower Group, PLC, an investment group based in the United Kingdom, has agreed to provide financing of approximately $31 million to Global Sterling Payment Systems Limited (a U.K. based company controlled by Peter Hamilton, CEO of ActiveCore and created to acquire and facilitate the restructuring of ePocket) in exchange for a royalty arrangement in respect of the commercialization of the ePocket technology and a 20% stake in Global Sterling. The first tranche of this investment (of approximately $2.2 million) is expected to close by the end of July 2005. The remainder of this financing will close by way of multiple tranches -- the entirety of which is to be completed by the end of 2005
Upon the completion of the ePocket restructuring and to compensate ActiveCore for its efforts and assistance over the past year, ActiveCore will receive an additional 4.2% equity interest in Global Sterling (in addition to the cash payment noted above) which will bring ActiveCore's aggregate ownership interest in Global Sterling to approximately 4.7%. Due to the relationship between Mr. Hamilton and Global Sterling, an independent special committee of ActiveCore's Board of Directors has been formed to review and approve all business between ActiveCore and Global Sterling.
ActiveCore President and CEO Peter Hamilton stated, "We are very pleased with the return on our investment in ePocket. We see the ePocket technology making a significant impact in the electronic payment industry -- an industry which has grown exponentially in recent years. We believe that our equity position in ePocket will become a valuable asset for ActiveCore and ActiveCore believes that numerous synergies exist between ActiveCore and Global Sterling. ActiveCore plans to play an ongoing role in the integration and implementation of ePocket's payment technology as a result of the experience acquired by CRATOS, which specializes in the integration of payments technology."
Peter Hamilton went on to say, "ActiveCore's long-term vision and strategy is starting to pay dividends. ActiveCore is on track and we will continue to execute our business plan which was designed to enhance long-term shareholder value."
This press release is available on the company's official online investor relations site for investor commentary, feedback and questions. Investors are asked to visit ActiveCore's IR Hub located at http://www.Agoracom.com/IR/ActiveCore . Alternatively, investors can e-mail AGORA Investor Relations directly at ATVE@Agoracom.com.
About ActiveCore Technologies, Inc. (www.ActiveCore.com)
ActiveCore Technologies, Inc., operates a group of subsidiaries and divisions in the U.S., U.K. and Canada that offer a Smart Enterprise Suite of products and services. We integrate, enable, and extend functions performed by current and legacy IT systems. Our products encompass web portals, enterprise middleware, mobile data access, data management and system migration applications. The Systems Integration and Modernization Division of ActiveCore operates under the trade names of CRATOS, MDI Solutions and TwinCentric. The Corporate Disclosure and Messaging Division of ActiveCore operates under the trade names C Comm Network Corporation, DisclosurePlus and ActiveCast. ActiveCore services clients in health care, financial services, government and manufacturing worldwide.
About ePocket Inc. (www.ePocket.com)
ePocket brings true electronic cash to the world for the first time, making purchases over the Internet as secure and simple as handing cash to a clerk in a store. ePocket enables banks to provide their customers with the ability to withdraw electronic cash in any currency from their regular deposit accounts, and send this electronic cash to merchants or other consumers in order to make payments. Cash created electronically is just like cash, except there are no coins, bills, or plastic cards -- it is entirely electronic. Just like cash, electronic cash does not require the identification of a payer. This provides privacy for consumers, and eliminates fraud and identity theft, making ePocket the most cost effective payment solution for Internet commerce. ePocket payments cost merchants less than any other payment technology. Their extraordinary cost effectiveness enables merchants to profitably accept very small payments of just one or two dollars. In contrast to other payment schemes, consumers do not have to open additional accounts with a payment intermediary. Consumers do not have to give up any identity or credit information in order to accomplish a payment. This makes ePocket payments completely secure, as well as providing complete privacy for consumers.
Statements contained in this news release regarding ActiveCore Technologies, Inc., formerly IVP Technology, and planned events are forward-looking statements, subject to uncertainties and risks, many of which are beyond ActiveCore's control, including, but not limited to, reliance on key markets, suppliers, and products, currency fluctuations, dependence on key personnel and trade restrictions, each of which may be impacted, among other things, by economic, competitive or regulatory conditions. These and other applicable risks are summarized under the caption "Risk Factors" in ActiveCore's Registration Statement on Form SB-2 filed with the Securities and Exchange Commission on January 4, 2005. Forward-looking statements by their nature involve substantial risks and uncertainties. As a result, actual results may differ materially depending on many factors, including those described above.