Company to focus resources on domestic operations
VANCOUVER, Feb. 13 /CNW/ - OneMove Technologies Inc. ("OneMove" or the "Company") (TSX-V: OM), a leading web-based real estate transaction platform, today announced that it has signed a binding memorandum of understanding ("MOU") for the sale of its U.K.-based wholly owned subsidiary, OneMove Limited, to Neil Patel, CEO, OneMove Limited. The sale is expected to close on or before February 28, 2008.
Under the terms of the agreement, Mr. Patel will return to treasury all 5.6 million of his currently held shares in OneMove that were issued to him as consideration for the original purchase of OneMove Limited. OneMove Limited will issue a debenture to OneMove for approximately (pnds stlg)1.2 million, to be paid out over a term of 10 years. OneMove will renounce ownership of OneMove Limited, returning all shares held, and provide (pnds stlg)175,000 in funding, 50% of which OneMove Limited will repay by way of the debenture. In addition, the representatives for each company will step down from the other company's Board of Directors, and the companies will enter into a brand sharing and a software royalty license agreement, the terms of which will be finalized upon closing.
"We believe these changes will strengthen our financial position over the long-term," said Martin Johnson, President and CEO, OneMove. "We have demonstrated continued strong growth in B.C., with transactions processed more than doubling year-over-year. However, sales in the U.K., while growing, have developed more slowly than expected. As a result, we believe it is prudent to eliminate our direct investment in the U.K. real estate market at this time and focus our financial resources on continuing to drive domestic growth. With the sale of OneMove Limited, we will be able to better capitalize on the opportunities in the fastest growing segment of our business and deliver on the full potential of our B.C. operations, while still participating in the growth of the U.K. market through the software licence agreement."
About OneMove Technologies Inc.
OneMove Technologies Inc. (TSX-V: OM) is a real estate transaction platform, currently serving the British Columbia, England and Wales real estate markets. By combining personal service, unique products and leading edge technology, OneMove(TM) simplifies and expedites the process of buying and selling real estate. The Company's product and service offerings include: econveyance(TM) the largest conveyance platform in British Columbia, and a Move Management System, Personal Moving Consultants, Home Buyer Expense Insurance, and the largest free online real estate listing database in England and Wales. Additional information about OneMove can be found at www.onemovetech.com or www.sedar.com.
Forward Looking Statements
This press release contains certain "forward looking statements." These statements relate to future events or future performance and reflect expectations and belief regarding growth, results of operations, performance, business prospects, opportunities or industry performance and trends. These forward looking statements reflect current internal projections, expectations or beliefs and are based on information currently available. A number of factors could cause actual events or results to differ materially from the results discussed in the forward looking statements. Although it is believed that the forward looking statements contained in this press release are based upon reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward looking statements. These forward looking statements are made as of the date of this press release, and OneMove Technologies Inc. assumes no obligation to update or revise them to reflect new events or circumstances, except as required pursuant to applicable securities laws.
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