Correction: QED Connect, Inc. Signs Agreement to Acquire 75% of Kaleidoscope Venture Capital, Inc.
MANCHESTER, N.H., Oct. 7, 2011 /PRNewswire/ -- QED Connect, Inc. (OTC: QEDN.PK) ("QED Connect") today announced that it has entered into an agreement to acquire 75% of Kaleidoscope Venture Capital, Inc. ("Kaleidoscope")(OTC: KLDO.PK). Kaleidoscope's satellite communication division, Kaleidoscope-TV, delivers DIRECTV programming through its proprietary roof top central dish system.
Kaleidoscope-TV technology distributes multiple DIRECTV satellite signals to customers on a single wire when coupled with DIRECTV-developed technology. The central dish system allows for a single compact dish antenna assembly to serve all the units in an entire building complex. This eliminates the need for each apartment/condominium in the building to have individual DIRECTV satellites dishes each requiring a direct line of sight to the DIRECTV signal, and for additional coaxial cables running throughout the building. The central dish system offers the least costly and more aesthetically pleasing solution then currently available to bring direct broadcast satellite to multi-family residential properties or as multi-dwelling units ("MDUs"). The technology is also optimized to provide state-of-the-art high-speed Internet and Voice Over Internet Protocol (VOIP) telephone products to DIRECTV Service Operators and customers.
Denny Andrews, Kaleidoscope's Executive Vice President of Sales and Marketing, will head up Kaleidoscope's new division, "Kaleidoscope Digital Media Systems," which will focus on customer integration of services and Social Media Marketing deployment.
MDUs represent approximately 20% of the 110 million households in the US which have one or more televisions. While direct broadcast satellite services represent 29% of the overall television delivery technologies in the United States, satellite television delivery to MDU households represents only .029% of overall media delivery. Kaleidoscope-TV is initially focused on a broad array of apartments and condominiums throughout the Seattle and San Francisco markets.
Eric Luttio, President and CEO of Kaleidoscope, commented, "Joining the QED Connect organization will give us greater resources to implement our roll out of the central dish rooftop technology and Kaleidoscope Digital Media Systems. As a result, we believe that we can achieve sales of $35 million over the next three years."
Tom Makmann, President and CEO of QED Connect, added, "The acquisition of Kaleidoscope validates how we are focused on executing our plan of seeking acquisitions and joint ventures with promising companies. Kaleidoscope-TV's technology offers a cost-effective solution to cable and we are expecting Kaleidoscope to contribute to QED Connect's income in 2012. We will continue to look for additional companies to add to our portfolio over the next few months."
As a result of the Kaleidoscope purchase agreement, QED Connect will acquire 75% of Kaleidoscope's common stock and will receive an additional 15% upon completion of funding of $750,000, with the option to be extended for up to $2 million. The selling shareholders of Kaleidoscope have the right to re-purchase up to 25% of Kaleidoscope once Kaleidoscope has reached 80% of its expected over the next two years.
About QED Connect, Inc.
QED Connect, Inc. makes acquisitions, investments, and enters into strategic business partnerships with businesses that have strong potential. We seek joint ventures and strategic alliances in which we can assist our partners in achieving their plans and realizing their maximum potential. QED Connect's current investments and joint ventures include:
- Sofame Energy, Inc., a joint venture with Sofame Technologies, which has designed the "Hybrid Percomtherm®" boiler which recovers boiler flue gas heat from existing boilers and recycles the heat, thereby leading to overall energy efficiency. Sofame Technologies has announced $1.4 million of orders for the Hybrid Percomtherm boiler in the past 6 weeks.
- Nazz Productions, a movie producer. Nazz's feature film, "Good Day For It," won Favorite Feature at the 2011 Sonoma International Film Festival and opened theatrically in Los Angeles in July. Nazz expects the film to be released on DVD and video on demand later this year.
- StockProfile.com, a media awareness company which operates a customized platform showcasing emerging growth stocks to independent investors. In June 2011, QED Connect purchased 100% of the assets of StockProfile.com.
As a result of its continued success in the mergers and acquisitions arena, QED Connect is considering becoming a "business development company" as defined under the Investment Company Act of 1940.
For more information about QED Connect, visit www.qedconnect.com
Safe Harbor Statement
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of QED Connect, Inc. (the "Company") to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital and to fund expansion plans; (ii) generate sufficient revenue and efficiently manage operations to obtain profitability; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors.
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QED Connect, Inc.
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SOURCE QED Connect, Inc.