Source : Business Wire
Nortia Capital Partners, Inc. Signs Letter of Intent
Atlanta, United States -- (Business Wire India) -- Friday, May 13, 2005 1:38:30 PM
Nortia Capital Partners, Inc., (OTC:NCPN) is pleased to announce that it has signed a Letter of Intent to acquire a minority equity stake in Holley Communications Investment, Inc. (Holley Communications), subject to due diligence review, an audit of Holley Communications financial statements, and the preparation and execution of a definitive agreement that would include representations and warranties and terms and conditions customary for transactions of this nature and magnitude. The final terms of the proposed transaction have not been disclosed. Nortia will form a subsidiary to acquire a minority interest in Holley Communications with the intention to register the subsidiaries securities. Upon their effective registration Nortia may cause substantially all of the shares that it owns in the subsidiary to be distributed to the Nortia stockholders. It is intended that Nortia shall distribute at least 90% of said shares net of all fees overhead and expenses.
Holley Communications is an experienced, market-oriented developer and provider of wireless communication products including handsets and solutions, as well as terminal and system devices. Holley Communications currently focuses on the Chinese mobile telecommunications market. With a population of 1.3 billion, and 325 million mobile subscribers as of October 2004, Holly believes there is substantial continued market growth potential in China, particularly for the mass market at the bottom of the pyramid of addressable subscribers. According to the China Ministry of Information Industry, the number of mobile subscribers in China is projected to reach 398 million, 475 million, 544 million, 608 million, 669 million, and 730 million during the years between 2005 and 2010. The vast mobile wireless market in China provides ample and continued opportunities for cost-effective growth in mobile terminals, low cost handsets, and wireless telemetry modules. The continued rapid growth in wireless subscribers and the advent of 3G mobile services will drive increasing demand for optimized and differentiated mobile solutions of WCDMA, TD-SCDMA and CDMA2000. With core TD-SCDMA technology and state-of-the-art software modules such as push-to-talk, Holley Communications is in a unique position to offer a portfolio of module and handset products. Holley Communications is known as one of the founding members of TD-SCDMA Industry Alliance, which marked the entering of fast development phase of TD-SCDMA standard.
William J. Bosso, Chief Executive Officer of Nortia, commented, "We believe the management of Holley Communications has developed a strategic business model for future growth within its market sector. We are pleased to be in a position to assist Holley Communications with its growth endeavors by providing its management with capital and advisory services in the areas of Corporate Finance and Capital Markets assistance."
About Holly Communications Investment, Inc.
Holley Communications states that, for its 2004 fiscal year, it sales were approximately $21.8 million, with an EBITDA of approximately $265 thousand and that it is on track to reach its budgeted goals for 2005 of $94 million in sales and $6.1 million in EBITDA. The financial statements for Holley Communications have yet to be audited and Nortia has yet to complete its due diligence and review of the projections provided by Holley Communications.
Holley Communications is a subsidiary of Holley Group, a privately owned holding company with operations world wide. Holley Group achieved sales of over one billion dollars for the year ending 2004.
About Nortia Capital Partners, Inc.
Nortia Capital Partners, Inc., is an Atlanta-based merchant banking firm that filed its N-54A election with the SEC to become a Business Development Company, pursuant to Section 54 of the Investment Company Act of 1940 on January 4, 2005. Nortia was established to provide capital and advisory services for management buyouts, recapitalizations, and the growth and capital needs of emerging growth companies. Nortia intends to make yearly distributions to its shareholders of at least 90% of its taxable investment income defined as net investment income from interest, dividends and net short term capital gains. Additional information can be found by visiting its website at www.nortiacapital.com.
Forward-Looking Statements:
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the Company and its subsidiaries. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by the Company may differ materially from these statements due to a number of factors. Any forward-looking statements speak only as of the date made. Statements made in this document that are not purely historical are forward-looking statements, including any statements as to beliefs, plans, expectations, or intentions regarding the future. Risk factors that may cause results to differ from projections include, without limitation, loss of suppliers, loss of customers, inadequate capital, competition, loss of key executives, declining prices, and other economic factors relating to its investee companies and inadequate capital, competition, loss of key executives, and other economic factors related to its own operations. Nortia assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before making investment decisions.
CONTACT:
Nortia Capital Partners Inc., Atlanta
William J. Bosso, 770-777-6795
wbosso@nortiacapital.com
www.nortiacapital.com
or
Investors:
Friedland Capital Inc.
Dara Podber-Albright, 201-420-7437
dara@friedlandcapital.com
www.friedlandcapital.come
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