IVP Technology Sells Mobile Games Division TORONTO, Feb 26, 2004 /PRNewswire-FirstCall via COMTEX/ -- IVP Technology Corp. (OTC Bulletin Board: TALL), d.b.a. ActiveCore Technologies Inc., announced today that it has sold majority control of its mobile games division to 1607590 Ontario Limited for approximately $1,750,000 effective March 1, 2004. 1607590 Ontario Limited will be renamed SilverBirch Studios Inc. following completion of legal documentation.
SilverBirch Studios Inc. is currently majority controlled by Kevin Birch, who has resigned from ActiveCore Technologies effective immediately. The games division transaction will proceed as a sale of assets, the terms of which have been approved by the independent members of ActiveCore's board of directors.
The purchase price will be satisfied by a 12% convertible debenture for approximately $750,000 payable over two years plus a 2% royalty on all gross revenues to a cap of $1,000,000 expiring in 5 years. ActiveCore will retain the right to convert the outstanding balance of the $750,000 debenture into equity in 1607590 Ontario Limited prior to the expiry of two years, subject to certain limitations, at the then prevailing share price of 1607590 Ontario Limited. ActiveCore Technologies will retain an initial 5% equity holding in the new company with a right to participate in further equity raising to maintain its ownership level.
Brian MacDonald, chairman and CEO of ActiveCore said, "The sale of the Games Division is a major business focus watershed for ActiveCore. We have built two successful divisions within a short period of time, both of which are poised to deliver immediate and excellent returns. While some of our shareholders will be disappointed by the sale of the games division, the sale will maximize immediate shareholder returns in 2004 and 2005. The overall market for middleware enabled mobile and web based enterprise applications is far larger than for mobile games."
Continuing on Mr. MacDonald also said, "From a financial perspective, ActiveCore will begin to receive royalty, interest and principal payments combined with an immediate reduction of approximately $1,400,000 in annual overheads related to the games division. Some of the overhead savings will be redeployed to boost our successful "smart enterprise" products and services under both the ActiveCore and MDI Solutions names and brands. Solely as a result of the sale of the games division, and based on an estimated 325,000,000 shares outstanding, we believe we will be able to generate a minimum of $0.01 additional positive earnings per share during the current 2004 fiscal year. Our decision to sell the games division substantially reduces the level of operational risk in the company while providing us with an on going stake in the mobile games market as revenues and profits in that market area grow over the next two years."
Brian MacDonald also said, "Our recent strategic partnership with BiznizWeb Inc. of Houston has lead us to concentrate our operations through a major investment in mobile and middleware enabled portals and in MDI Solutions, which in turn, with future acquisitions, will allow us to become a bigger factor and participant in the what the Gartner Group terms 'Smart Enterprise Suites.' We see the ability to focus on the 'smart enterprise' market segment as providing substantially greater shareholder value over the short to medium term than spreading our attention over two increasingly divergent business divisions. Our ability to create and sustain a viable mobile games division over the last year will however continue to contribute to ActiveCore's overall market value through our passive investment in SilverBirch Studios."
Kevin Birch, chairman and CEO of the new SilverBirch Studios Inc., said "Since its inception, IVP's mobile games division has rapidly grown to become a leading, progressive developer of games and ring tones, and we feel that its Recess Games portal is the finest mobile content distribution platform in the industry. This acquisition is validation of our belief in the division, and we are very excited about this transaction and the anticipated benefits for both IVP and SilverBirch. We look forward to an ongoing, mutually beneficial business relationship with ActiveCore."
In other news the company also announced that Hawk Associates will no longer be providing Investor Relations services for ActiveCore, also effective March 1, 2004, although the company will continue to be represented on The American Microcap Institute website at www.hawkmicrocaps.com where Sarbanes Oxley mandated materials of interest to investors in ActiveCore Technologies Inc. may be accessed.
About BiznizWeb Inc.
BiznizWeb Inc. d.b.a. DynaPortal Software Company is a privately held Texas corporation created by a group of seasoned professionals that combine years of traditional IT and business expertise with the new energy of the Web to produce quality portal software. Since 1995, DynaPortal has been creating Web applications that exploit new communications and information channels. As both business computing and media converge on the Web platform, the company strives to produce innovative new ways to exploit this exciting e-Business environment. More information may be obtained at www.dynaportal.com.
About SilverBirch Studios Inc.
SilverBirch Studios Inc. (www.silverbirchstudios.com) is a newly incorporated Canadian company which has acquired certain assets and operations of ActiveCore Technologies. The company is a developer, publisher and distributor of mobile games and ring tones. More information may be obtained by contacting Kevin Birch at kbirch@silverbirchstudios.com.
About ActiveCore Technologies, Inc.
IVP Technology Corporation, d.b.a. ActiveCore Technologies, Inc. is an emerging, fast-growing software company that develops, distributes and implements middleware enabled mobile and web applications. ActiveCore is rapidly becoming a major participant in Gartner Group's "Smart Enterprise" sector. ActiveCore also owns MDI Solutions, a North American wide IT and specialized integration service primarily to the healthcare industry. Mobile and web solutions sold by ActiveCore Technologies allow business customers to "integrate, enable and extend" back office and legacy systems to meet the needs of customers and staff wherever they may be located.
For investor relations information contact Brian MacDonald at (416) 252-6200 extension 313. Detailed information about ActiveCore can be found on the website www.activecore.com. Copies of ActiveCore press releases, current price quotes, stock charts and other valuable information for investors may be found on the website www.hawkmicrocaps.com
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