Magna Moves To Acquire Copydot Prepress, SkinnyScript Strategic Partner
Press release from the issuing company
VANCOUVER, BRITISH COLUMBIA--Following right on the heels of the successful launch of its SkinnyScript(TM) technology, Consolidated Magna Ventures Ltd. ("Magna'', symbol CMV:CDNX) is moving quickly to acquire Copydot Prepress Inc., its strategic partner in introducing its proprietary technology to the publishing world. On September 25,2001 the company signed a Letter of Intent to purchase 100% of the issued and outstanding shares of Copydot.
Copydot Prepress Inc. is a Burnaby-based private company whose focus for more than 11years now is providing North American publishers with high quality, cost effective prepress services needed to prepare publications for print. The company has a reputation for quality and has shared in many awards for print quality, most recently placing third, behind Elle and Vogue, with Hana Hou!, the official in-flight magazine for Hawaiian Airlines. Moreover, they are experts in all aspects of digital production, including the latest advancements in computer-to-plate (CTP) workflows.
SkinnyScript(TM) technology, developed initially for the digital printing market where prepress is not required, was introduced into Copydot's production environment through PODbook.com Ltd. (PODbook), Magna's wholly owned subsidiary. Both companies conducted extensive testing to ensure that this new method of reducing image file sizes up to 100 times would not compromise quality. The success of the prepress tests at Copydot culminated last week in the full-scale print production of the October issue of San Jose Magazine. Both companies now conclude that SkinnyScript(TM) technology is a significant advancement in this industry, making the production and delivery cycles quicker and less costly than any other competitor can offer at this time.
The acquisition of Copydot is viewed as a strategic extension of PODbook's business plan that will allow the Company to compete directly in the publication prepress market, estimated at over US$1 billion annually. Furthermore, it will provide a bricks and mortar business, complete with experienced staff and management, from which to build out the web services and Print on Demand side of PODbook's business model.
The agreement with Copydot calls for Magna to acquire an undivided 100% interest in Copydot in exchange for the issuance of 2,500,000 common shares of Magna to the shareholders of Copydot. Magna's Board of Directors expects to issue approximately 700,000 incentive stock options to the employees and shareholders of Copydot at a minimum price of $0.15. Such issuances may be subject to escrow or other restrictions, imposed by the British Columbia Securities Commission and/or the Canadian Venture Exchange. In addition, the President of Copydot, Rick Gagner, will be appointed to Magna's Board of Directors and both he and Peter Field, V.P. Marketing for Copydot will be offered management contracts, the details of which have yet to be determined. The Letter Agreement is valid for 60 days during which time both companies will conduct their requisite due diligence and, upon closing, the acquisition will be subject to regulatory approval.
Magna President, Robert Archer stated "The events of the last few weeks have ushered in a new era for Magna. Our CTO, Daniel Walters has done an exemplary job in developing SkinnyScript(TM) for the prepress market and the team at Copydot has demonstrated a great deal of technical ability, professionalism and business acumen throughout the testing period. Through the last few months of our relationship we came to realize that we shared a common vision for the implementation of SkinnyScript(TM) in the prepress market and we are extremely pleased to join forces with them to build a significant presence in the printing industry.''
Rick Gagner, President of Copydot stated, "On behalf of my partner, Peter Field, and all our employees, let me say that we are all extremely positive about the move to join both companies and count it a blessing to have found such a rare technology that is right for its time in this industry. Daniel Walter's hard work and countless years of research will finally receive the recognition it deserves. Moreover, this technology, at the present time, is unchallenged in our business and is a significant leap in value added service to our clients, some of the largest publishers in North America. Think about it, faster and less expensive archival and retrieval processes, lower storage requirements and costs, improved design productivity, quicker and less costly communications anywhere, Web-enabled, and PDF-based. Our customers and prospects are lining up to get these benefits.''
Magna believes this new venture will clearly prove the importance of SkinnyScript(TM) as a breakthrough technology that can be translated into instant revenues. Furthermore, the company is committed to a fast growth track in market share in the prepress industry and will consider other acquisitions as part of this process. As gains are consolidated here, this technology will have many positive spinoffs in other industries, not the least of which is digital print.
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