TTGL News Titan Global Announces Agreement to Expand Global Telecommunications Assets in Fast-Growing Asian Markets
RICHARDSON, Texas--(BUSINESS WIRE)--Titan Global Holdings, Inc. (OTCBB:TTGL), a high-growth diversified holding company, announced today that the Company’s leading subsidiary, Titan Communications, consummated a definitive letter of intent with Prism Systems International Ltd., (“Prism”) a Hong Kong based facility based telecom company (the “Joint Venture”).
The Joint Venture is consistent with Titan's stated strategic plan to opportunistically acquire or lease global telecommunication assets. Titan has and will continue to target and pursue other telecommunication assets throughout 2007 with similarly structured agreements.
"We are very excited about our possible Joint Venture with Prism Systems International," said Kurt Jensen, President and Chief Executive Officer of Titan's Communications Division. "Prism’s presence in Asia will strengthen our international footprint. Furthermore, we expect to achieve additional synergies and cost savings by leveraging Prism’s telecom agreements and network."
Under the definitive letter of intent, Titan was granted an exclusive option for a period of 60 days to enter into an agreement pursuant to which Titan will manage Prism’s telecom facility and pay Prism $.001US for each minute of traffic successfully terminated to intended destinations routed through Prism’s Hong Kong POP site. The term of the eventual agreement would be for one year with Titan’s option to renew the term for three additional terms of three years each on the identical terms.
Prism was formed in Hong Kong in 2000 after the deregulation of Hong Kong’s telecommunications industry. It is owned by ACE Enterprises, Ltd, Shanghai Commercial and Saving Bank, Century City, Clarent Corporation and other strategic investors. Prism’s telecommunications ‘footprint’ is designed principally to terminate traffic throughout China and other Asian countries.
"We look forward to consummating the definitive agreement which will allow us to intensify our due diligence and finalize the transaction in May, 2007," said Bryan Chance, President and Chief Executive Officer of Titan Global Holdings. “We believe that creating a presence in fast-growing Asian markets will ultimately benefit our shareholders as we continue to build value by increasing margins on existing international routes and gaining access to new, efficient international routes.”
About Titan Global Holdings
Titan Global Holdings, Inc. ("Titan") (OTCBB:TTGL) is a high-growth diversified holding company with a dynamic portfolio of companies engaged in emerging telecommunications markets and advanced technologies. In its last fiscal year Titan generated in excess of $109 million in revenues on a consolidated basis.
Titan's Oblio Telecom Inc. ("Oblio") telecommunications subsidiary, based in Richardson, Texas, is a market leader in prepaid telecommunications products and the second largest publicly-owned international telecommunications company focused on the prepaid space. Oblio leverages strategic agreements with Tier 1 telecommunications leaders Sprint and Level3 to supply its brand-name prepaid calling cards. Annually Oblio sells an estimated 35 million of its brand-name prepaid calling cards through its established distribution channels estimated at more than 60,000 retail outlets.
Titan Wireless, Inc. ("T Wireless") is Titan's wireless subsidiary and is a mobile virtual network operator ("MVNO"). T Wireless sells its MVNO prepaid wireless products and wireless services through Oblio's established distribution channels. Titan's Electronics and Homeland Security division specializes in advanced manufacturing processes to provide commercial production runs and quick-turn delivery of printed circuit board prototypes for high-margin markets including Homeland Security and high-tech clients.
Safe Harbor Statement Under the Private Securities Litigation Act of 1995 -- With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of TTGL could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors see the risk factors associated with our Company, review our SEC filings.
