Attached files
| file | filename |
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| 8-K - Teleconnect Inc. | v199366_8k.htm |
Exhibit
99
Press
Release
Teleconnect,
Inc. completes acquisition of HEM – new age validation business takes
off
BREDA, Netherlands, October 19,
2010 / PRNewswire/ -- Teleconnect, Inc. (OTCBB: TLCO)
announces today that it has completed the acquisition of 100% of Hollandsche
Exploitatie Maatschappij BV (HEM) in The Netherlands. HEM, established in 2007,
developed the very effective age validation system 'Ageviewers', which makes it
virtually impossible for minors to acquire alcohol or tobacco.
The
Transaction
On
October 15, 2010, Teleconnect and HEM formalized a contract before a Public
Notary in The Netherlands, whereby Teleconnect purchased HEM in exchange for 12%
of the outstanding shares – post issuance – of Teleconnect.
The
purchase of HEM was subject to an assessment of the viability of HEM’s business
plan by Teleconnect’s management. Also, at a special written meeting
of the stockholders, 91.69% of the shareholders of the Teleconnect ratified the
Board’s decision to complete this purchase.
Our
assessment included, but was not limited to, analyses of the employed technology
and HEM’s intellectual property rights, as well as a thorough analysis of the
market. In addition, a report on the value of HEM and the launch readiness of
Ageviewers were requested from independent third parties. During our assessment,
HEM’s management demonstrated the viability of the Ageviewers solution by
entering into contract with over 20 alcohol outlets in the Netherlands for a
period of 36 months – which was previously defined in HEM’s business plan as a
milestone to be achieved before September 30th
2010.
We have
identified risk factors which could affect the success of HEM’s business. For
instance, the resistance from commercial parties that benefit from the sales of
alcohol and tobacco is expected to be well organized. Teleconnect management
believes that despite this possible resistance and other obstacles, an effective
solution such as Ageviewers is likely to be implemented. Teleconnect expects
that in due time, the Ageviewers system can play a prominent role in the
prevention of sales of alcohol and tobacco to minors by retail
businesses.
Background
Alcohol
consumption at too early an age has developed into a global problem over this
past decade. Adolescents drink too early, too often and too much. High alcohol
consumption at a young age can leave scars impossible to remove. It can lead to
acute intoxication and causes irreparable damage to the young and developing
brain. Poor school results and disorderly conduct are problems associated with
drinking at too early an age. Moreover, it increases the chance of developing
alcohol-related problems at a later stage in life.
The
extent of the damage for society, either short or long term, can hardly be
accounted for any more. Effectively limiting the availability of alcohol for
adolescents by strictly enforcing legal age limits has become a top priority in
the health policies of most developed countries.
Lock on alcohol
The
general availability of alcohol is significantly enhanced by a lack of
consistency and the inherent inefficiencies to traditional methods of age
validation. With the Ageviewers system, age checks are therefore no longer
performed by cashiers, but systematically and from a remote validation center.
Without authorization from the center, there is no way to register the sale of a
product requiring an age check. The approach has proved to make it virtually
impossible for minors to acquire alcohol or tobacco.
The
system does not confront adults with the burden of having to show
identification. Also, it introduces the possibility of 100% age compliance for
the sale of alcohol and tobacco products at self scan checkouts.
Milestones
While
completing the technical development and successfully performing pilots in
retail outlets, HEM in 2009 was awarded subsidies by both the European Community
and the Dutch Government for the "social and technical innovation" demonstrated
with the Ageviewers solution. Also, an article highlighting the effectiveness of
the Ageviewers solution was published in the Journal of Adolescent Health. Last
January, the Dutch Minister of Health revealed a report by the Dutch Consumer
Product Safety Authority, concluding the unique possibilities the system offers
in the enforcement of age limits. In March 2010, the Koninklijke SlijtersUnie
(KSU), the royal Dutch association of independent liquor stores, representing
over 500 outlets in the Netherlands, announced the introduction of Ageviewers
among their member outlets.
The
aforementioned new contracts are the early results of KSU’s endorsement of
Ageviewers. Management expects to at least double the number of contracts by the
end of 2010, which is the next milestone in HEM’s
business plan.
President's
Message
" We
announced in early 2009 a drastic corporate restructuring of Teleconnect, Inc.
which we have now successfully completed with the acquisition of HEM. Achieving
over twenty 3-year contracts clearly indicates that our projections of our new
business are tracking as forecasted. We expect to increase the number of
contracts during the next stage of our business plan significantly, which
will accelerate our growth. Also, we are avoiding sales of alcohol and tobacco
to minors. The business is taking off.”
For
more information on Hollandsche Exploitatie Maatschappij BV please refer to
www.hembreda.nl
For
more information on Teleconnect Inc please refer to the Over-the-Counter
Bulletin Board (OTCBB) with trading symbol TLCO at the following website: www.otcbb.com
SOURCE: Teleconnect,
Inc.
Media
Contact: Mr. Gustavo Gomez
Email:
ageviewers@gmail.com
Statements
contained in this press release contain the Company’s, or
its management’s, expectations and assumptions about future events,
are forward-looking statements intended to be covered by the safe harbour
provisions of the Private Securities Litigation Reform Act of 1995, and the
results anticipated by any or all of the forward-looking statements may not
occur. In addition, these statements are subject to risks and
uncertainties that could cause actual results to differ materially from those
set forth in, or implied by, these forward looking
statements. Factors that could affect those results include, but are
not limited to, those described in the Company’s annual report on Form 10-K for
the fiscal year ended September 30, 2009 as well as the Company’s subsequent
reports on Form 10-Q and Form 8-K, which have been, or will be, filed with the
Securities and Exchange Commission.