NEW YORK, July 3 /PRNewswire-FirstCall/ -- Organetix Inc. (BULLETIN BOARD: OGTX) has today announced the amicable termination of the previously executed definitive merger agreement ("definitive") with Florida based privately held ADAO Telecom, Inc. ("ADAO"). Recall that on January 25, 2007, Organetix entered into the definitive with ADAO; closing had been expected during the second half of calendar 2007. Under terms of the termination agreement, ADAO has agreed to repay Organetix the $279,000 USD over the next 12 months plus 7.5% annual interest ("the note") that has been advanced to date (ADAO has until August 01, 2008 to fully repay the note). The interest accrual will commence August 01, 2007 and thereafter, until the balance of the note is repaid to the Company. Should ADAO default on the outstanding note, Organetix shall receive a 12.5% equity stake in ADAO for a total of $279,000. If a partial payment is rendered by ADAO, the outstanding balance plus interest (at end of 12 months) will convert to the corresponding percentage of 12.5% equity.
Formula:
A= Outstanding Balance plus accrued interest A x
B= $279,000 (Original Balance) DIVIDED BY = DIVIDED BY
x = Variable Equity Percentage, solve for B C
C = 12.5% (Percentage Corresponding to $279,000)
Addressing the termination agreement, Organetix CEO Seth Shaw commented, "After careful consideration, it was determined by both parties not to proceed with the closing of the merger between Organetix and ADAO. We would like to wish ADAO and its management team the best in its future business endeavors. As CEO of Organetix, I would like to express to shareholders my sincere excitement about the future of this Company. Management will continue to devote all of its energy to building a valuable Company moving forward. Shareholders will be updated in a timely manner as material events develop."
About Organetix Inc.
Organetix Inc. (BULLETIN BOARD: OGTX) has defined its short term strategy as evaluating potential acquisition candidates to both restore and create shareholder value. The Company's securities are currently listed on the NASD Over the Counter Bulletin Board Market (OTCBB).
Disclaimer
This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may include the description of our plans and objectives for future operations, assumptions underlying such plans and objectives, statements regarding benefits of the proposed acquisition and other forward-looking terminology such as "may," "expects," "believes," "anticipates," "intends," "projects" or similar terms, variations of such terms or the negative of such terms. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. Such information is based upon various assumptions made by, and expectations of, our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to significant economic and competitive uncertainties and contingencies beyond our control and upon assumptions with respect to the future business decisions, which are subject to change. Accordingly, there can be no assurance that actual results will meet expectations and actual results may vary (perhaps materially) from certain of the results anticipated herein.
