EDMONTON, Feb. 2 /PRNewswire-FirstCall/ -- Datec Group Ltd. (TSX: DGL. TC: DTGLF), is pleased to announce that it has closed the Arrangement transaction with Elandia, Inc. (formerly eLandia Solutions, Inc.) Under this transaction Elandia, Inc. issued a total of 6,808,542 shares of Elandia to the Datec securityholders, in exchange for the assets of Datec. Those shares represent approximately 30% of the total outstanding shares of Elandia. This represents an exchange ratio of approximately 0.2015 shares of Elandia for each share of Datec. On the Exchange, Datec securityholders will receive replacement shares for their existing shares of Datec and will continue to be shareholders of Datec, which will be a shell company unless and until Datec pursues other business opportunities. The Elandia shares issued to the Datec securityholders will be deposited in escrow in 25% quarterly installments, with the first installment being released 30 days after Elandia's shares are listed on NASDAQ, AMEX or the NTC Bulletin Board.
Full details respecting the Arrangement and Elandia, Inc. were set out in Datec's Management Information Circular dated September 27, 2005.
The Arrangement with Elandia was completed effective February 1, 2006, which is the cut off date for determining shareholders entitled to participate in the transaction. Shareholders that have not already done so should submit their share certificates to Datec's transfer agent, Computershare Trust Company of Canada, together with the transmittal letters that were sent to shareholders with the Management Information Circular.
Forward Looking Statements:
Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as "believes" "anticipates" "plans" or "expects" and other statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.
The Toronto Stock Exchange has neither approved nor disapproved the
information contained herein.
