ActionView International, Inc. CEO Discusses Rationale for Planned Merger Transaction With Stanza Systems, Ltd.
VANCOUVER, BC — (Marketwire) — 10/21/08 — ActionView International, Inc. (OTCBB: AVWI) today issued a statement from CEO Steven R. Peacock in which he discussed the rationale for the company targeting Stanza Systems, Ltd., whose wireless management services and technologies enable some of the largest and most successful companies in the world to better manage and operate their businesses, for a planned merger transaction.
Stanza Systems, Ltd. and ActionView International have entered into an initial agreement in the form of a letter of intent that provides the framework for a subsequent definitive agreement under which ActionView International would acquire all of the issued and outstanding shares of Stanza Systems, Ltd. in exchange for a majority percentage of ActionView International.
Mr. Peacock stated, “While we do not claim to be experts in the business of wireless management services and technologies, we have gathered enough information and conducted enough due diligence to convince us that Stanza Systems is not only in an industry that is poised to experience significant growth in the coming years, but that this company specifically is well positioned to build value for ActionView shareholders.
“First, we believe that Stanza possesses the right revenue model for a business entering the public markets at this time. Stanza is focused on recurring revenue from managed services from which they will collect and process information from hundreds of thousands of machines, owned and operated by thousands of companies, billing monthly fees for this service that will grow exponentially. They have also focused on key industries where their services are most needed, including those that are dealing with vital and expensive resources that must be better managed, such as the electrical utilities, water and waste water management, petroleum production, and delivery and telecommunications.
“In choosing a merger candidate in today’s challenging economy, we were also attracted to a company that has the resources and expertise to help businesses to better manage their energy and other resources as a strategy to cut costs and operate more efficiently. This is what Stanza brings to its clients, and we expect that more and more businesses of all sizes will be pursuing this type of assistance now and in the coming years.
“We know from our experience in the sustainability sector that companies, organizations and governments are now being compelled to adopt new monitoring and management systems. While the motivation for needing this service can vary from environmental concerns to better resources management, to cost savings, to asset protection, the fact is that monitoring and managing information is the way of the future. At the same time, few companies, no matter how large, want to invest internally to create and support these industrial management systems.
“Stanza’s business is part of the M2M device, software, network, and service market, which is expected to grow rapidly worldwide between now and 2010. Industry estimates suggest the 2010 world market may exceed $300 billion in annual revenue. These numbers indicate some very exciting future potential for our merger target, and we look forward to moving this transaction forward to a quick close.”
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