Sherwood Park, Alberta / August 11th, 2014 / Virtutone Networks Inc. (“Virtutone” or the “Company”) (TSX Venture: VFX.V) is pleased to announce that it anticipates, subject to TSX Venture Exchange approval, the completion of a its previously announced acquisition of certain assets, or underlying customers, from its largest customer in an effort to diversify the Company’s customer base.
Virtutone has purchase five key underlying customers of its largest customer, as previously announced Adding these assets will improve the proportional balancing of the Company’s total revenue.
In addition to the diversification, Virtutone plans to take over an additional $1.2 million in revenues per month at a gross margin of approximately 3% ($36,000 per month of additional margin) as a part of the acquisition.
In connection with the acquisition, Virtutone projects the issuance of one million shares for this transaction for a deemed value of $260,000.
This previously announced asset acquisition was subject to performance criteria, which has been met, however the asset acquisition remains subject to approval by the TSX Venture Exchange.
For further information, please contact Jason Allen at 780-702-5777.
About Virtutone Networks Inc.
Virtutone Networks Inc. is a technology company based in Sherwood Park, Alberta and is listed on the TSX Venture Exchange in Canada. The Company is a leading supplier of wholesale telecommunication services. Additional information can be found on the Company’s website at www.virtutone.ca.
This document may contain certain forward-looking information or statements (“Forward-looking statements”) as defined under applicable securities legislation that involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks include, without limitation, risks related to: the termination, non-renewal of or default under any current or new wholesale contracts; changes in the global economy; a failure to negotiate new customer contracts; changes in legislation or the interpretation thereof, particularly in the telecommunications industry. Forward-looking statements are any statements other than statements of historical fact. The use of any “plan” “expect ” “project” “believe” “should” “anticipate” or other similar words or statements that certain events “may” or “will” occur are intended to identify forward-looking statements. In particular, forward-looking statements included in the press release include, without limitation, statements regarding: the impact of the new voice traffic contracts and the sustainability of the new revenue stream. The forward-looking-statements contained herein are based on certain assumptions including, without limitation, assumptions regarding: global economic conditions; changes in laws and regulations; the impact of Virtutone’s new contracts; the market for wholesale telephony services; the maintenance of new and current wholesale contracts; and the ability to add new wholesale clients. Although management believes the expectations reflected in the forward-looking statements contained herein are reasonable, no assurances can be given that any of the events anticipated in forward-looking statements will occur, or, if they do, what benefits Virtutone will derive therefrom. As such readers are cautioned not to place undue reliance on forward-looking statements, which are effective only as of the date of this document or as of the date otherwise specifically indicated herein. Virtutone assumes no obligation to update forward-looking statements, except as required by applicable law. The historical revenue numbers for the new wholesale contracts do not represent estimates of future revenues to be received by the Company.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.