MONTREAL, April 27, 2006 (PRIMEZONE) -- Satelinx's (Pink Sheets:SLXI) Board of Directors yesterday approved the formal agreement in principle between CQIP and Satelinx whereby CQIP has agreed to invest into Satelinx through a combination of transfer of assets and funding. The completed transaction will bring into Satelinx assets of over 100 million U.S. and 25 million U.S. in cash. In exchange CQIP will receive shares of Satelinx representing 51% of the total issued and outstanding shares of Satelinx at the time of the closing. The agreement still requires shareholder approval and the approval of the CQIP. Closing is expected to take place by June 01, 2006.
"This transaction is expected to proceed smoothly," stated Sam Grinfeld, Chairman of the Board of Satelinx, "and we are confident that we can meet our scheduled closing date."
The impact of this investment by CQIP allows Satelinx to expand and diversify. Satelinx is in the process of expanding its management and Board of Directors. Announcements will be made as each new member comes on board.
About Satelinx
Satelinx International Inc. provides satellite vehicle tracking units that integrates GSM/GPS/GPRS wireless technologies and the Internet to deliver wireless tracking and location services. Satelinx seeks to be recognized as the world leader in providing safety and security solutions on a global scale in a cost effective manner for vehicle owner, trucking or private vehicle fleet and insurance companies.
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, including forecasts of market growth, future revenue, benefits of the proposed merger, and expectations that the merger will be accretive to Satelinx's results and other matters that involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: difficulties encountered in integrating merged businesses; uncertainties as to the timing of the merger; approval of the transaction by the stockholders of the companies; the satisfaction of closing conditions to the transaction, including the receipt of regulatory approvals; whether certain market segments grow as anticipated; the competitive environment in the software industry and competitive responses to the proposed merger; and whether the companies can successfully develop new products and the degree to which these gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release. Satelinx and VIRTUAL WAVE INC. undertake no obligation and do not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release.
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