GLEN ROCK, N.J., Dec. 8 /PRNewswire-FirstCall/ -- Global Agri-Med Technologies, Inc.("Global") trading under the symbol GAGO announced today that its controlling shareholder, Roger Fidler, has entered into a contract with Wayne Brittingham of ISource Consulting Group LLC (ISource), a profitable outsourcing company, to acquire ISource as part of a change of control transaction.
In exchange for the sale of control, the ISource business will be acquired in a wholly owned subsidiary of Global that will be called ISource Consulting Group, Inc. The new business is approximately 2 years old and has grown steadily with revenues exceeding $7.5 million for the full year ending December 31, 2008 with gross operating income of approximately $1.9 million and net operating income of approximately $469 thousand on a GAAP adjusted accrual basis. The company strives to grow its revenue and earnings at 20% per annum.
The parties expect the transaction to close in the near future subject to due diligence by both sides. Roger Fidler, President of Global stated: "This is a major coup for Global since the present business has floundered in the wake of our key supplier undergoing liquidation and the Company being forced to reconfigure its plans to acquire machinery thereby adding a couple million dollars to the required capital for continuing in the breast cancer screening business. ISource will give the Company a strong entry into an instantly profitable business, with a self-financing expansion capability in an industry that can only grow in the years to come."
Wayne Brittingham, owner and Chief Executive of ISource added: "The increased visibility and access to capital afforded by going public should increase our growth rate and allow for further acquisitions being made on a favorable basis utilizing the Global stock as currency."
For those interested in our financial condition, you can find current postings of our financial statements and other information about the Company at www.pinksheets.com. Simply enter our trading symbol GAGO and you will be able to access our information.
Statements in this press release which are not historical, including management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to the risk factors and other information set forth in Global's filings with the Securities and Exchange Commission and on www.pinksheets.com. Actual results could differ materially from any forward-looking statements and may vary from management's expectations and cannot be guaranteed.
SOURCE Global Agri-Med Technologies, Inc.
|SOURCE Global Agri-Med Technologies, Inc.|
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