SirenGPS and HDS International Execute Asset Purchase
Agreement
ST. LOUIS, MO -- June 2, 2015 -- InvestorsHub
NewsWire -- HDS International Corp. (OTC:
HDSI), a technology development company, today announced that
it has executed an Asset Purchase agreement with St Louis based
SirenGPS, Inc. to acquire the software and intellectual property
that form the basis of the SirenGPS emergency management software
as a service (SaaS) platform. The deal transfers ownership of the
SirenGPS emergency management software application, trademark,
copyright and related intellectual property to HDSI in exchange for
a $6,500,000 (USD) note. The note carries a zero (0%) interest rate
and is convertible at the option of the seller into restricted
Series B Preferred shares of HDSI at sixteen (16) cents per
Series B Preferred Share. This represents a common share price of
$0.0008, a 400% premium over the closing price on June 1, 2015 the
trading day prior to the day the agreement was executed.
HDSI CEO Paul Rauner explained that this transaction is the
final step in the transition of the SirenGPS emergency management
business into the public entity that we acquired control of in
March. SirenGPS will retain ownership of patent claims related to
video tools that we do not believe are part of the core service
offering, and will seek to market that product under a different
name. The balance of the intellectual property and all of the
software that forms the basis of the SirenGPS emergency management
services becomes the property of the public entity. The Company
recently filed a 14C with the Securities Exchange Commission,
realigning the Companys stock structure to enable the reservation
of shares necessary to meet the obligations under this Asset
Purchase Agreement (APA). This APA also provides the rights to
change the name of the Company to SirenGPS, ownership of the
SirenGPS brand and allows HDSI to change its ticker to SGPS.
Rauner explains the structure of the transaction as follows: We
staged the process of moving SirenGPS assets into HDSI in order to
protect the original investors from the risk associated with taking
on baggage that might be associated with a pre-existing public
entity. "We have been able to restructure HDSI, overcome a few
substantial obstacles and sign financing commitments for $4.6
million, satisfying the requirements to complete the transaction.
The incomplete transaction was confusing to shareholders and to our
customers, so the timing is right to move forward in order to
provide transparency to the market. In regard the conversion price
associated with the APA, Rauner said that "While the conversion
share price is a significant premium over the current share price,
we believe that [HDSI] shares are substantially under-priced. I
believe this will ultimately represent a tremendous value purchase
for HDSI and create value for HDSI and SirenGPS shareholders in the
future. The emergency management market is approaching an
inflection point, driven by domestic and international threats,
natural disasters, and social unrest. We believe HDSI is well
positioned to become the market leader in this space by bringing
the patent pending SirenGPS platform to municipalities, surrounding
communities, medium and large enterprises, and foreign countries
over the coming years."
For additional information about HDSI, please visit www.hdsicorp.com, or refer to the Companys regulatory
filings at www.sec.gov.
About HDS International Corp.
HDS International Corp. (OTC Pink: HDSI), is a technology
development company based in St. Louis, MO, providing emergency
management software services under a license agreement with
SirenGPS, Inc., a Delaware corporation headquartered in
Missouri.
Forward-Looking Statements
Statements not historical in nature, are intended, and are
hereby identified as, "forward-looking statements". Forward-looking
statements may be identified by words including "anticipate,"
"believe," "intends," "estimates," "expect," and similar
expressions. The Company cautions readers that forward-looking
statements including, without limitation, those relating to future
business prospects are subject to risks and uncertainties that
could cause actual results to differ materially from projections,
estimates or aspirations, due to factors such as those relating to
economic, governmental, technological, and any risks and factors
identified from time to time in the Company's reports filed with
the SEC.
CONTACT INFORMATION
HDS International Corp.
401-400-0028
info@hdsicorp.com
http://www.hdsicorp.com