iPrint Provides More Details Regarding Proposed Asset Disposition
Press release from the issuing company
SANTA CLARA, Calif., Aug. 28, 2002 -- iPrint Technologies, inc., a leading provider of online and offline marketing and customized branding solutions, today announced additional details regarding the previously announced agreement in principle with MadeToOrder.com, Inc. (MTO) with regard to the disposition of substantially all assets of iPrint and its subsidiary, Wood Associates (together called "the Company''). MTO is a privately held technology leader for business-to-business procurement of logo merchandise.
It is expected that the proposed transaction, if consummated, will be structured as part of an assignment for the benefit of creditors (ABC) under California law. An ABC is a non-judicial insolvency procedure in which all assets of the Company are transferred to a third party (Assignee) to be held in trust and liquidated for the benefit of the Company's creditors, with any amounts remaining after payment of costs and satisfaction of creditors, distributable to the Company's stockholders. iPrint anticipates the role of Assignee will be undertaken by Sherwood Partners, Inc., a Los Angeles-based restructuring firm. Once the transfer is made, the Assignee will make all final decisions with respect to the disposition of the assets. The transaction discussed between MTO and the Company to date includes an earn-out feature, creating the possibility that some funds may be available for distribution to the Assignee over time. Based upon information available at this time, the Company cannot forecast whether any amounts will be available to its stockholders.
Under the terms of the proposed transaction, MTO will purchase from the Assignee certain assets of the Company. It is anticipated that MTO will also assume certain liabilities of the Company. MTO presently expects to continue to operate the combined business under the MTO name. Assuming the transaction is consummated, iPrint will no longer trade on the Nasdaq Stock Market.
Based upon the discussions that have taken place to date, upon completion of the proposed transaction it is anticipated that Monte Wood, current President and CEO of iPrint Technologies, will become MTO's CEO. Certain other officers and employees of iPrint will also be hired by MTO.
Certain officers, directors, and stockholders of iPrint have irrevocably committed to vote their shares, representing approximately 58 percent of iPrint's outstanding shares, in favor of the transaction.
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