Cenit Signs Letter of Intent to Acquire All Outstanding Shares of Cycom Canada Corporation
September 04 2008 - 5:00PM
Marketwired
Cenit Corporation ("Cenit" or the "Company")(TSX VENTURE: CNT) is
pleased to announce that it has entered into a letter of intent
with Cycom Canada Corporation ("Cycom") dated August 28, 2008 (the
"Letter of Intent"), whereby Cenit has agreed to acquire all of the
issued and outstanding common shares of Cycom (the "Proposed
Acquisition"), such that Cycom will become a wholly owned
subsidiary of the Company upon completion of the Proposed
Acquisition. It is the intention of Cenit to retain all of the
existing employees of Cycom and conduct business as usual following
completion of the proposed transaction with no disruption of
service.
Under the terms of the Letter of Intent, the Company will pay
the sum of $3,000,000 in connection with the Proposed Acquisition
and in addition will pay approximately $1,000,000 in connection
with working capital, legal fees and costs associated with Cycom's
acquisition of a service company. It is the intention of the
parties to complete the proposed transaction on or before the 30th
day of September, 2008.
Completion of the Proposed Acquisition is subject to a number of
conditions, including, but not limited to, acceptance by the TSX
Venture Exchange. In addition, other necessary conditions to close
the Proposed Acquisition include obtaining all other necessary
regulatory, and third party approvals and authorizations, the
completion of a definitive agreement setting forth the terms and
conditions set forth in the Letter of Intent, the completion of due
diligence and financing arrangements. There can be no assurance
that the Proposed Acquisition will be completed as proposed or at
all.
The following information relating to Cycom has been provided to
the Company by Cycom.
About Cycom
Cycom is a private company that offers a comprehensive array of
services, including management and IT consulting, system
integration, project management, solution design and deployment,
extended support and legacy system migration. For information
relating to Cycom, refer to their website at www.Cycom.com.
About Cenit Corp.
Cenit Corporation is a Canadian holding company which operates
subsidiaries in diverse market niches: Blue Port Technologies Inc.
(BP), Continental Asset Management Inc. (CAM), and Health
Promotions Strategies Inc. (HPSI). BP is a software development
company coupled with a recruiting services business; CAM was a
vendor of Point of Sale systems which business and customer list
were sold as of May 31, 2008; and HPSI was a registered gaming
supplier but did not renew its license in early 2008 due to the
fact that it sold its customer list but it continues to receive a
residual income stream. Cenit is continually looking for strategic
investment alternatives to enhance shareholder value.
Cautionary Statement
This news release contains "forward-looking statements" within
the meaning of applicable securities laws relating to the proposal
to complete the Proposed Acquisition, including statements
regarding the terms and conditions of the Proposed Acquisition.
Readers are cautioned not to place undue reliance on
forward-looking statements. Actual results and developments may
differ materially from those contemplated by these statements
depending on, among other things, the risks that the parties will
not proceed with the Proposed Acquisition, that the ultimate terms
of the Proposed Acquisition will differ from those that currently
are contemplated, and that the Proposed Acquisition will not be
successfully completed for any reason (including the failure to
obtain the required approvals or clearances from regulatory
authorities). The statements in this news release are made as of
the date of this release.
Shares Outstanding (Non-Diluted): 23,976,327
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this News
Release.
Contacts: Cenit Corporation Birks Bovaird CEO (416) 214-9152
Website: www.cenitcorp.com
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