Digital Color Print Acquires Logical Imaging Solutions
Press release from the issuing company
SANTA ANA, CA, Oct 02, 2002 -- Digital Color Print, Inc. announced today the acquisition of Santa Ana, CA-based Logical Imaging Solutions, Inc., from Color Imaging, Inc. (OTCBB: CIMG). The buyout of CIMG's wholly-owned subsidiary was lead by CIMG's former Chairman and CEO, Michael W. Brennan, and several other officers and directors of CIMG. The transaction was effected through the establishment of DCP, a new company formed specifically for the acquisition. The terms of the purchase, as disclosed in CIMG's recent Form 8-K/A filing, was the payment of 1.7 million shares of CIMG common stock, valuing the transaction at approximately $2.125 million and the granting to CIMG of warrants to purchase shares in DCP.
Mr. Brennan, as disclosed in CIMG's recent Form 10-Q, resigned as CIMG's Chairman, CEO and from the board of directors to dedicate himself to the furthering of the business interests of LIS, including its reorganization as a standalone company separate and apart from CIMG. "The timing for this transaction was perfect, as LIS has completed a five-year development cycle culminating in unique patented color printing technologies, now ready for market and to be introduced as the DigitalColorPress," stated Mr. Brennan, who will serve as Chief Executive Officer of DCP.
Mr. Brennan further noted, "DCP intends to make the appropriate filings with the SEC and to offer to exchange shares of DCP's common stock for shares of CIMG common stock, held by CIMG's shareholders of the record date, October 1, 2002. DCP will redistribute the tendered shares of CIMG, on a pro rata basis, to all tendering CIMG shareholders. The exchange offer will enable investors in CIMG to realize a return from the two differing businesses and technologies. Tendering shareholders will participate in the continued profitable expansion of CIMG, whose sales have grown from $9 to $33 million over the last three years and also share in the introduction and growth of the high-speed color printing technology developed by LIS."
The DigitalColorPress provides the commercial printer with a complete printing system that installs directly on existing offset presses. The system expands conventional offset printing capabilities to include the printing of unlimited computer-driven variable data in a continuous printing operation, including the printing of images, text, bar codes, MICR, and alphanumeric sequences. These functions address the needs of the commercial printers for the digital processing and printing of variable data at extremely high speeds and eliminates all conventional prepress processes such as the preparation of printing plates and mixing of inks, and is recognized as the elusive breakthrough that has been predicted for years in the $160 billion annual U.S. printing industry. This unique, next-generation technology is expected to eventually replace offset printing, methods that have not materially changed since Gutenberg invented the offset press, as digital processing is vastly superior to current laborious, 'make-ready' pre-press processes and will transform commercial printing by reducing the purchase, set-up and operating costs of offset printing.
Digital Color Print, Inc. is headquartered at 1920 East Warner Avenue, Santa Ana, CA. The telephone number is (949) 474-4960 and the FAX is (949) 474-8114. DCP's web sites are www.digitalcolorpress.com and www.logical-imaging.com.
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