LAS VEGAS, Aug. 2, 2005 (PRIMEZONE) -- Allixon (Pink Sheets:AXNP) has executed a Letter of Intent to acquire 100% of the issued and outstanding stock of MeridCom Inc., www.meridian-prime.com, subject to completion of due diligence by both parties.
This will include verification and updating of financial information on both companies.
It is anticipated that a definitive agreement in principle will be negotiated and executed within the next sixty (60) days. Closing will be subject to approval of the Board of Directors of both companies as well as a majority of shareholders. After closing, the shareholders of MeridCom Inc. will be the owners of seventy percent (70%) of the total issued and outstanding shares of Allixon.
MeridCom Inc. is a three-year-old company that is a provider of prepaid Internet access in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. MeridCom distributes its products through private-label agreements, with prepaid phonecard companies, giving MeridCom Inc. access to well over 200,000 retail locations.
MeridCom's products include downloadable versions that are available on the Internet, as well as retail versions that include a mini CD-ROM and Point of Sale generated PIN access.
Prepaid Internet access is a growing market segment. With this new, credit-free, private, and portable means of access to Internet services, new customers, who previously had either limited or no access to the services, can now have Internet service on terms that work for them. People who find the prepaid model attractive and useful include customers without a credit history, such as students and immigrants, as well as workers that were too mobile to have a billing address, such as military personnel. It is also valuable to parents who want to control their children's Internet usage; professional travelers looking to control their costs; and consumers who prefer to pay with cash.
Safe Harbor Act
The statements contained in this release and statements that the companies may make orally in connection with this release are not historical fact and are forward-looking statements within the of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those forward-looking statements, as such statements involve risks and uncertainties that could significantly impact the company's business and the actual outcome and results may differ materially.