EX-99
3
ex_99-1.htm
PRESS RELEASE DATED JUNE 16, 2005
EXHIBIT 99.1
IA GLOBAL ANNOUNCES CLOSING OF GLOBAL HOTLINE, INC. ACQUISITION
BURLINGAME, CA June 16, 2005/PRNewswire-FirstCall/ --
IA Global Inc. (Amex: IAO) announced that the acquisition of Global Hotline, Inc. ("GHI"), a privately held Japanese company, closed June 15, 2005. The transaction was structured as a share exchange in which IAO will issue 15,000,000 shares of its common stock in exchange for 100% of GHI's equity. The IAO common stock had a value of $.207 per share, which was the average close price during the twenty days prior to the signing of the April 20, 2005 Share Exchange Agreement, or an aggregate value of $3,100,000.
GHI was established September 7, 2004 as a call center operator and reseller of telephone and broadband lines in Japan. The Japanese telecommunications market is experiencing significant growth in alternative carriers due to recent regulatory changes that now permit individuals and companies to choose their telephone service provider. The company operates two call centers with 370 seats and utilizes four agents with an additional 300 seats to support the business.
GHI has two contracts with a KDDI, a significant Japanese telecommunications company. The first contract covers the period October 1, 2004 thru September 30, 2005 and requires GHI to sell subscriber lines based on agreed monthly targets. GHI expects to be paid 841,000,000 Yen or $7,800,000, at current exchange rates under this contract. The second contract covers the period March 16, 2005 through March 31, 2006 and requires GHI to sell subscriber lines based on agreed monthly targets. GHI expects to be paid 2,925,000,000 Yen or $27,100,000, at current exchange rates under this contract. Should the targets not be achieved on a quarterly basis, then GHI will be required to refund portions of the revenue to the customer. GHI has outsourced the call center operation for the first contract with similar penalties to protect the revenues and profits. GHI has two call center operations to support the second contract.
We expect the Global Hotline acquisition to increase our stockholder's equity by $3,100,000 to above $6,000,000 and to help us maintain our AMEX listing. This acquisition further expands our Japanese operations and provides substantial additional revenue. We expect GHI to contribute $17,000,000 to $19,000,000 in sales to IA Global during 2005 and $28,000,000 to $30,000,000 in sales through March 31, 2006. We expect GHI to be profitable on a stand-alone basis starting in the third quarter or fourth of 2005 and help IA Global to achieve our goal of being profitable for 2005.
We continue to work with AMEX to maintain our listing. There is no guarantee that the company will be successful in maintaining its AMEX listing.
About IA Global Inc.
IA Global, Inc. is a public holding company focused on acquiring primarily Japanese companies that operate in the gaming, entertainment and technology areas. We own 60.5% equity interest in Rex Tokyo Co Ltd, which is a supplier and installer of parts to the Pachinko and slot machine gaming industry in Japan. Rex Tokyo supplies such items such as automatic medal dispensing machines, automatic cigarette butt disposal systems, lighting systems and Pachinko balls and other Pachinko accessory products as well as numerous new Pachinko and slot machines. We own 100% of Global Hotline, Inc, which operates call centers and is a reseller of telephone and broadband lines in Japan.
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For further information, contact:
Mark Scott, CFO
IA Global Inc.
533 Airport Blvd. Suite 400
Burlingame CA 94010
650-685-2402 (t)
650-685-2404 (f)
scott@iaglobalinc.com
www.iaglobalinc.com
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements (within the meaning of Section 27a of the Securities Act of 1933 and Section 21e of the Securities Exchange Act of 1934) regarding us and our business, financial condition, results of operations and prospects. Specifically, the statement in this press release concerning the projected revenues for 2005 and 2006 revenues and 2005 profitability are forward-looking statements. Forward-looking statements in this report reflect the good faith judgment of our management and the statements are based on facts and factors as we currently know them. Forward-looking statements are subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Readers are urged not to
place undue reliance on these forward-looking statements which speak only as of the date of this press release. We undertake no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of the press release.
"
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EX - 99 3 ex _ 99 - 1 . htm PRESS RELEASE DATED JUNE 16 , 2005 EXHIBIT 99 . 1 IA GLOBAL ANNOUNCES CLOSING OF GLOBAL HOTLINE , INC . ACQUISITION BURLINGAME , CA June 16 , 2005 / PRNewswire - FirstCall / -- IA Global Inc . ( Amex : IAO ) announced that the acquisition of Global Hotline , Inc . ( " GHI " ) , a privately held Japanese company , closed June 15 , 2005 . The transaction was structured as a share exchange in which IAO will issue 15,000,000 shares of its common stock in exchange for 100 % of GHI 's equity . The IAO common stock had a value of $ .207 per share , which was the average close price during the twenty days prior to the signing of the April 20 , 2005 Share Exchange Agreement , or an aggregate value of $ 3,100,000 . GHI was established September 7 , 2004 as a call center operator and reseller of telephone and broadband lines in Japan . The Japanese telecommunications market is experiencing significant growth in alternative carriers due to recent regulatory changes that now permit individuals and companies to choose their telephone service provider . The company operates two call centers with 370 seats and utilizes four agents with an additional 300 seats to support the business . GHI has two contracts with a KDDI , a significant Japanese telecommunications company . The first contract covers the period October 1 , 2004 thru September 30 , 2005 and requires GHI to sell subscriber lines based on agreed monthly targets . GHI expects to be paid 841,000,000 Yen or $ 7,800,000 , at current exchange rates under this contract . The second contract covers the period March 16 , 2005 through March 31 , 2006 and requires GHI to sell subscriber lines based on agreed monthly targets . GHI expects to be paid 2,925,000,000 Yen or $ 27,100,000 , at current exchange rates under this contract . Should the targets not be achieved on a quarterly basis , then GHI will be required to refund portions of the revenue to the customer . GHI has outsourced the call center operation for the first contract with similar penalties to protect the revenues and profits . GHI has two call center operations to support the second contract . We expect the Global Hotline acquisition to increase our stockholder 's equity by $ 3,100,000 to above $ 6,000,000 and to help us maintain our AMEX listing . This acquisition further expands our Japanese operations and provides substantial additional revenue . We expect GHI to contribute $ 17,000,000 to $ 19,000,000 in sales to IA Global during 2005 and $ 28,000,000 to $ 30,000,000 in sales through March 31 , 2006 . We expect GHI to be profitable on a stand - alone basis starting in the third quarter or fourth of 2005 and help IA Global to achieve our goal of being profitable for 2005 . We continue to work with AMEX to maintain our listing . There is no guarantee that the company will be successful in maintaining its AMEX listing . About IA Global Inc . IA Global , Inc . is a public holding company focused on acquiring primarily Japanese companies that operate in the gaming , entertainment and technology areas . We own 60 . 5 % equity interest in Rex Tokyo Co Ltd , which is a supplier and installer of parts to the Pachinko and slot machine gaming industry in Japan . Rex Tokyo supplies such items such as automatic medal dispensing machines , automatic cigarette butt disposal systems , lighting systems and Pachinko balls and other Pachinko accessory products as well as numerous new Pachinko and slot machines . We own 100 % of Global Hotline , Inc , which operates call centers and is a reseller of telephone and broadband lines in Japan . - 1 - For further information , contact : Mark Scott , CFO IA Global Inc . 533 Airport Blvd. Suite 400 Burlingame CA 94010 650 - 685 - 2402 ( t ) 650 - 685 - 2404 ( f ) scott@iaglobalinc.com www.iaglobalinc.com " Safe Harbor " Statement under the Private Securities Litigation Reform Act of 1995 : This press release contains forward - looking statements ( within the meaning of Section 27a of the Securities Act of 1933 and Section 21e of the Securities Exchange Act of 1934 ) regarding us and our business , financial condition , results of operations and prospects . Specifically , the statement in this press release concerning the projected revenues for 2005 and 2006 revenues and 2005 profitability are forward - looking statements . Forward - looking statements in this report reflect the good faith judgment of our management and the statements are based on facts and factors as we currently know them . Forward - looking statements are subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in the forward - looking statements . Readers are urged not to place undue reliance on these forward - looking statements which speak only as of the date of this press release . We undertake no obligation to revise or update any forward - looking statements in order to reflect any event or circumstance that may arise after the date of the press release . " - 2 -
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