Artificial Life, Inc. Announces Equity Investment from 3M and Strategic Alliance Agreement
October 26 2009 - 6:00AM
PR Newswire (US)
LOS ANGELES, BERLIN and HONG KONG, Oct. 26
/PRNewswire-Asia-FirstCall/ -- Artificial Life, Inc., (OTC:ALIF)
(BULLETIN BOARD: ALIF) and 3M Company ("3M"; NYSE: MMM) today
announced the signing of a securities purchase agreement (the
"Purchase Agreement") and a strategic alliance agreement between
Artificial Life, Inc. and 3M Company. Under the Purchase Agreement,
Artificial Life, Inc. sold to 3M 6,447,491 shares of its common
stock at a price of $1.00 per share, for an aggregate consideration
of $6,447,491. The basic and diluted number of shares outstanding
immediately after the transaction is 56,984,858 and 64,474,911,
respectively. The proceeds will fund an equity contribution by 3M,
representing a 10% equity interest in Artificial Life, calculated
on a fully diluted basis. Besides the investment, 3M and Artificial
Life have entered into an alliance agreement (the "Alliance
Agreement") outlining the parties intent to collaborate in the
coming years in projects related to the research and development of
new mobile device products and technology. In addition, the
Alliance Agreement provides that 3M and Artificial Life plan to
cooperate in connection with the marketing of certain of Artificial
Life's existing and new products. The focus of the cooperation
under the Alliance Agreement is expected to be in the following
areas: -- General mobile and broadband applications and
technologies -- Digital Watermarking -- Virtual Reconstruction of
2D and 3D Objects -- Augmented Reality -- 3D Image processing --
Object recognition -- Mobile Healthcare and Diabetes Solutions --
Mobile Marketing and M-Commerce Platform "We are excited to become
an investor in Artificial Life," said Stefan Gabriel, president, 3M
New Ventures. "We are looking forward to collaborating with
Artificial Life on a number of exciting technology applications in
these fast growing markets all across the wide range of 3M
businesses." "We are honored that 3M has chosen us for a strategic
investment and as a new cooperation partner in the mobile space.
The investment and the alliance agreement with 3M provide a strong,
global business opportunity for us. The cooperation will allow us
to create innovative business and lifestyle applications for one of
the leading innovators in the business world and the general
public. We are looking forward to working with 3M on many projects
in the coming years," said Eberhard Schoneburg, CEO of Artificial
Life, Inc. The issuance of the shares of Artificial Life's common
stock in connection with the Purchase Agreement has not been
registered under the Securities Act of 1933, as amended (the
"Securities Act"). Accordingly, these securities may not be offered
or sold in the United States except pursuant to an effective
registration statement or an applicable exemption from the
registration requirements of the Securities Act. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy Artificial Life's common stock. About Artificial Life,
Inc. Artificial Life, Inc. (OTCBB: ALIF) is a public US corporation
headquartered in Los Angeles, with its production center in Hong
Kong and additional offices in Berlin (EMEA headquarters) and
Tokyo. As a leading, full-service provider of mobile broadband 3G
technology, mobile participation TV, mobile gaming, content and
business applications, Artificial Life provides 2D and 3D multi-
and single player rich-media applications for 3G, 3.5G and 4G
network-enabled mobile phones. Recognized internationally for
outstanding content quality and technology, Artificial Life
transcends traditional modes of mobile communications and
interactive gaming. For more information, please visit
http://www.artificial-life.com/ or the company's m-commerce portal
at http://www.botme.com/ . About 3M A recognized leader in research
and development, 3M produces thousands of innovative products for
dozens of diverse markets. 3M's core strength is applying its more
than 40 distinct technology platforms -- often in combination -- to
a wide array of customer needs. With $25 billion in sales, 3M
employs 75,000 people worldwide and has operations in more than 60
countries. For more information, visit http://www.3m.com/ .
Contacts: Artificial Life, Inc. Ada Fong Tel: +852-3102-2800 Email:
3M Media Contact: Donna Fleming Runyon Tel: +1-651-736-7646
Investor Contacts: Matt Ginter Tel: +1-651-733-8206 Bruce Jermeland
Tel: +1-651-733-1807 Forward-Looking Statements: This press release
contains "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Such
forward-looking statements include, without limitation, statements
regarding our future results of operations, financial condition and
business prospects. In some cases, you can identify forward-looking
statements by terminology such as "may", "will", "should",
"expect", "intend", "plan", "anticipate", "believe", "estimate",
"predict", "potential", "continue" or the negative of these terms
or other comparable terminology. Although such statements are based
on our own information and information from other sources we
believe to be reliable, you should not place undue reliance on
them. These statements involve risks and uncertainties, and actual
market trends or our actual results of operations, financial
condition or business prospects may differ materially from those
expressed or implied in these forward looking statements for a
variety of reasons. Potential risks and uncertainties include, but
are not limited to, our ability to obtain additional funding to
operate and grow our business; the unproven potential of our mobile
gaming business model; changing consumer preferences and
uncertainty of market acceptance of our products; timely adoption
and availability of 3G mobile technology; market acceptance for use
of mobile handheld devices to play the interactive games;
unpredictable mobile game development schedules; our reliance on a
relatively small number of brands; our ability to license brands
from others; our dependence upon resellers and telecommunication
carriers and operators to distribute our products; our ability to
successfully develop, introduce, and sell new or enhanced products
in a timely manner; and the timing of new product announcements or
introductions by us or by our competitors. For additional
discussion of these risks and uncertainties and other factors,
please see the documents we file from time to time with the
Securities and Exchange Commission, including our Annual Report on
Form 10-KSB filed on February 10, 2009. We assume no obligation to
update any forward-looking statements, which apply only as of the
date of this press release. DATASOURCE: Artificial Life, Inc.
CONTACT: At Artificial Life, Inc., Ada Fong, +852-3102-2800, or ;
or at 3M, Media Contact, Donna Fleming Runyon, +1-651- 736-7646, or
Investor Contacts, Matt Ginter, +1-651-733-8206, or Bruce
Jermeland, +1-651-733-1807 Web Site:
http://www.artificial-life.com/ http://www.3m.com/
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