May
24, 2000
Transpacific Resources Inc. announced today that it has signed a two
month option agreement to supply startup financing to Toronto-based
high tech company, Matias Corporation.
Matias
has developed patented technology to support text entry on palmtop
devices, at speeds of up to 88% of desktop keyboard rates, a major
advance over the cumbersome data entry methods of current palmtops
and pocket-sized e-mail devices.
Transpacific
can acquire 25% of the equity of Matias in exchange for $1,125,000
cash and 2,700,000 post-consolidation shares of Transpacific representing
9.9% of the issued and outstanding shares of Transpacific upon completion
of the transaction, for a total deemed consideration, based on the
market price of the shares assuming a 1 for 10 consolidation.
Transpacific
also has a 1 year right of first refusal to supply additional financing
for Matias.
The
cash will be used to finance production of Matias' first generation
product, a handheld information appliance with word processing as
its main application. Initially, it will be marketed as a faster note
taking tool for university, college, and high school students.
If successful,
the technology could also lend itself well to future generation products,
such as two-way pagers and truly functional Internet telephones with
extensive e-mail capability.
In order
to finance the acquisition, Transpacific intends to arrange a private
placement of Transpacific shares. There is no assurance that funds
will be secured in a timely fashion. The agreement and share consolidation
are subject to regulatory review.
Matias
Corporation is a development stage company with nominal assets and
revenues, which may present difficulty in raising the necessary capital.
It also faces the risks of entering a marketplace dominated by market
leader, Palm (Nasdaq:PALM) which
currently holds 70.4% of the worldwide handheld market share (Source:
IDC, 1999). The company faces further competition from Microsoft
(Nasdaq:MSFT) and its recently updated Pocket PC operating system,
whose products offer more features, but are also more expensive than
the Matias product. A software prototype is available for download
from the company's website at:
http://halfkeyboard.com
The
Matias management team consists of founders Edgar Matias and Steve
McGowan, and Tony Cutruzzola:
Edgar
Matias is the President of Matias Corporation and the inventor
of the Half Keyboard. He is also a member of the University of
Toronto's Input
Research Group, a multi-disciplinary group which studies computer
input devices. He has over 15 years of experience in software development,
user interface design, and programming, on projects ranging from low-level
operating system extension utilities to high-level online groupware
database applications (in languages ranging from Assembler to Perl).
He also has a working knowledge of industrial design, digital image
manipulation, and website design.
Tony
Cutruzzola, MBA, CA, is Operations & Finance Advisor. His responsibilities
include business development and matters involving the raising of
capital. With a long background in mergers and acquisitions, he is
the former Chief Financial Officer of Mobile
Computing Corporation (TSE:MBL),
a leading supplier of onboard wireless business solutions for the
transportation industry. Prior to that, he was the Chief Financial
Officer of Alias|Wavefront,
a wholly-owned, independent software subsidiary of Silicon Graphics,
Inc. (NYSE:SGI).
Alias|Wavefront is a world leader in 2D and 3D computer graphics technology.
Steve
McGowan, B.Comm., M.Sc., is Vice President of Finance, and responsible
for financial and administrative matters. As well as being one of
the founders of Matias Corporation, he brings experience in managing
financial, real estate, administrative, and information technology
functions within Ontario Hydro. He graduated with distinction from
the University of Toronto (Trinity College) earning a double Specialist
in Commerce & Finance and Economics. He did his postgraduate work
at the London School of Economics (specializing in Monetary Economics)
and graduated in the top quartile of his class. He is a member of
the International Right of Way Association, the Canadian Property
Tax Association, and a past President of the Trinity College Investment
Fund.
Edgar
Matias will join the board of the Transpacific subsidiary formed to
hold and supervise its high tech investments.
Transpacific
is continuing its principal business of mineral exploration and development.
Financing in excess of the $1,125,000 will be used to fund exploration
efforts, which currently focus on precious metals.
As recently
announced, Transpacific acquired property in the Sudbury area of Northern
Ontario where it is concentrating its current exploration activities.
Surface sampling of rock outcrop has shown the presence of platinum
and palladium in a mafic intrusive one mile long by 2,000 feet wide
on the company's River Valley property 70 km. east of Sudbury. Further
sampling of this intrusive is in progress. The company also has extensive
holdings in the Kirkland Lake area of Northern Ontario.
Exchange Listing - CDNX
Trading Symbol - YTQ
Shares Outstanding - 244,503,105
www.transpacificresources.com
