Nexus Telocation Systems Ltd. Announces Closing of Agreement for Purchase of All Outstanding Shares of Pointer (Eden Telecom Gro
June 27 2004 - 11:32AM
PR Newswire (US)
Nexus Telocation Systems Ltd. Announces Closing of Agreement for
Purchase of All Outstanding Shares of Pointer (Eden Telecom Group)
Ltd. GIVATAYIM, Israel, June 27 /PRNewswire-FirstCall/ -- Nexus
Telocation Systems Ltd. (OTC:NXUS) (BULLETIN BOARD: NXUS) , a
leading provider of Stolen Vehicle Retrieval services, announced
today the closing of the Share Exchange Agreement with the
shareholders of Pointer (Eden Telecom Group) Ltd. pursuant to which
Nexus purchased 100% of the issued share capital of Pointer in
exchange for shares and warrants of Nexus, representing
approximately 26% of the issued share capital of the company on a
fully diluted basis, post transaction. The purchase of Pointer
continues Nexus strategy to strengthen its presence as an operator
of location based services and security applications. As a result
of the purchase of Pointer by Nexus both companies will be able to
expand the services to be provided to their customers. Pointer is a
communication company specializing in providing location services
for vehicles and persons through a communication network deployed
throughout Israel. The network is capable of command and control
services, telemetry and transfer of wireless data. The main product
of Pointer is a sophisticated system for the protection and
location of vehicles. The products of Pointer are based on Nexus'
technologies. The product includes a distress button, which is an
integral part of the system, which allows to immediately alert,
from the vehicle, assistance services from a twenty-four hours
manned telephone service center, which locates the vehicle and
immediately sends to it the required service. The Pointer systems
also allow personal location of the vehicle through the Internet,
by inserting a personal code, at any given time, through the
Pointer website - http://www.pointer4u.co.il/. Yossi Ben-Shalom,
Chairman of the Board of Directors of Nexus, commented: "I am
confident that the purchase of Pointer by Nexus using both
capabilites will leverage our business both in Israel and in other
territories, where we are heading.The leading companies in the
field of Stolen Vehicle Recovery are operating in the model of
owning a propriatery technology, while serving as an operator.
Nexus improves its position for competing by owning the operator
here in Israel, in addition to its operator in Argentina. Excellent
management team in Pointer, with wide experience and knowledge have
led the company to achieve 50K subscribers in an environment of
very high intense competition. We intend to utilize their
capabilities to build the leading group in the field of vehicle
security". The issued share capital of Nexus after the closing
is169,831,941 Ordinary Shares, par value New Israeli Shekel 0.03
each and approximately 96 million options and warrants of which
approximately 80% are at an exercise price per share of $0.044. The
major holdings in the Company following the closing are as follows:
DBSI Investments Ltd. - approximately 35% of the share capital;
Polar Communciation Ltd. - approximately 9% of the share captial;
I.D.B. Group - approximately 8% of the share capital; Pelephone
Communciations Ltd. - approximately 6% of the share capital; M.
Wertheim (Holdings) Ltd. - approximately 5% of the share capital;
AMS Electronics Ltd. - approximately 6% of the share capital. Nexus
Telocation Systems Ltd. develops, manufactures and markets low
energy and cost effective wireless communications and location
based information systems through the application of digital spread
spectrum technologies deployed in Stolen Vehicle Retrieval
applications. This press release contains forward-looking
statements with respect to the business, financial condition and
results of operations of Nexus and its affiliates. These
forward-looking statements are based on the current expectations of
the management of Nexus, only, and are subject to risk and
uncertainties relating to changes in technology and market
requirements, the company's concentration on one industry in
limited territories, decline in demand for the company's products
and those of its affiliates, inability to timely develop and
introduce new technologies, products and applications, and loss of
market share and pressure on pricing resulting from competition,
which could cause the actual results or performance of the company
to differ materially from those contemplated in such
forward-looking statements. Nexus undertakes no obligation to
publicly release any revisions to these forward-looking statements
to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events. For a more detailed
description of the risks and uncertainties affecting the company,
reference is made to the company's reports filed from time to time
with the Securities and Exchange Commission. Contact: Ronen Stein
V.P. and Chief Financial Officer Tel.; +972-3-572-3111 e-mail:
DATASOURCE: Nexus Telocation Systems Ltd CONTACT: Contact: Ronen
Stein, V.P. and Chief Financial Officer, Tel.; +972-3-572-3111,
e-mail:
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