FARMINGTON HILLS, Mich., Jan. 3, 2008 (PRIME NEWSWIRE) -- LBO Capital Corp., (Other OTC:LBOC), a Colorado corporation (hereinafter "LBO Capital"), announced today that it signed a Definitive Agreement with Longborough Capital, PLC, a public company in the United Kingdom (hereinafter "Longborough"), to effect a merger of common stock of Longborough's subsidiaries Global Tech International, Inc., a Delaware corporation (hereinafter "GTI"), and Advanced Digital Components, Inc., a Delaware corporation (hereinafter "ADCI") into LBO Capital. A 1 for 8 reverse split was approved by a resolution supported by the Board of Directors and a majority of the shareholders of LBO Capital common stock in order to effect this agreement. Under terms of the Definitive Agreement bearing an effective date of December 31, 2007, LBO Capital will issue 18,000,000 post-split "new" shares of common stock to acquire 87% of ADCI and 86% of GTI. Closing of the transaction is planned to occur during the first quarter of 2008.
After conversion of debt and after a 1:8 reverse merger is completed, shareholders of 16,100,000 old shares of LBO Capital's common stock will thereafter hold 2,012,500 new outstanding common shares. Following this reverse merger, LBO Capital will have no long term debt and 20,012,500 shares of authorized, issued and outstanding common stock.
Managing Director of Longborough, Mario DiNello, commented: "I am pleased to announce that Longborough, a developer of technologies, is continuing to position itself as a key player on the global level of automotive original equipment manufacturers (OEMs) and other strategic partners. ADCI and GTI, working alongside commercial partners, can offer clients a complete, total solution package. Additionally, the merger with LBO Capital will enhance the commercial profile and status of the company while providing investors and shareholders a visible value of their investment."
Corporate Profiles
LBO Capital, Inc., a Colorado corporation, was organized in 1988 for the purpose of acquiring operating or developing companies.
Longborough Capital, PLC, a public company in the United Kingdom, was formed in 2003 with the aim of commercially exploiting new technologies with the potential for global roll-out.
Advanced Digital Components, Inc., a Delaware corporation formed in 2003, is a development stage enterprise which holds intellectual property for tire air pressure monitoring devices for vehicles.
Global Tech International, Inc., a Delaware corporation formed in 1996, is an IP development stage enterprise and licensor of intellectual property consisting of patents for the manufacturing of plastic composites. GTI is a member of USCAR and is currently working with General Motors, Ford and Chrysler in the field of weight reduction by the utilization of encapsulated lightweight composites.
The statements included in this news release concerning predictions of economic performance and management's plans and objectives constitute forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1934, as amended. These statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to, factors detailed in the Company's Securities and Exchange Commission filings, economic downturns affecting the operations of the Company or any of its business operations, adequate financing to achieve the new strategic plans, the impact of competition, the success of products in the marketplace and the unavailability of financing to complete management's overall plans and objectives. The forward-looking statements contained in this news release speak only as of the date hereof and the Company disclaims any intent or obligation to update these forward-looking statements.