VANCOUVER, July 18, 2012 /PRNewswire/ - On4 Communications, Inc. ("On4") (OTCQB: ONCI) is pleased to provide shareholders with a corporate update for NetCents Systems Ltd. ("NetCents"). NetCents and On4 have entered into a binding share exchange agreement where upon closing, On4 will acquire 100% of the outstanding shares of NetCents. The Management of both companies are working to close the transaction in a timely manner.
NetCents development phase and the creation of a secure online payment technology have been successfully completed in 2011. The NetCents technology was recently launched to the online community in Canada. The launch was a huge success with merchant contracts being signed with several major corporations and organizations including:
- Southern Alberta Brain Injury
- Lone Wolf Media
- Conservative Party of Canada
- World Accessibility
- FFL Health
- Lancaster & David Chartered Accountants
- Alberta Diamond Exchange
- Global Storm IT
Today, NetCents is a fully functioning payment processing company that has been recognized and adopted by all the major financial institutions across Canada.
NetCents management has identified two underserved but profitable market segments. One is the Multi-Level Marketing ("MLM") Industry and the other is, providing payment processing solutions for persons with disabilities. To test these markets, two pilot projects were launched to develop and assess online payment solutions. Both pilot projects were recently successfully completed.
The first pilot project was for the online Multi-Level Marketing ("MLM") industry, which is a multi-billion dollar market and growing rapidly. Currently, the online payment options of choice for this industry are credit cards and a selection of e-wallets. These options have a number of challenges including the inability to electronically reimburse agent's commissions as well as an increase in the number of agents not having credit cards for purchases. NetCents not only addresses these limitations but also reduces charge backs and credit card fraud while increasing the efficiency in the delivery time of products and services to their agents and customers. The pilot project was launched in partnership with FFL Health. This pilot project was a precursor to establishing a relationship with Isagenix, a well-established billion-dollar corporation in the online health and vitamin industry. As a result of this relationship, NetCents is now in discussion with three of the top MLM companies in the world, two of which are in the UK with the other being U.S based.
The second underserved market identified by the NetCents management is the disability community. Efficient, secure payment processing has been over looked in this growing community. Management is in discussions the government bodies responsible for the disbursement of funds to persons with disabilities.
To give an idea as to the magnitude of this market, below are a few of the initiatives NetCents is exploring:
Equipment and Assistive Technology Initiative (EATI)
The EATI is a new initiative that was funded by the Labour Market Agreement between the Government of Canada and the Province of BC. Several million dollars were allocated to allow individuals to determine their own needs and develop their own personal strategy when purchasing equipment and assistive technology.
Choice in Support for Independent Living (CSIL)
This is a group of approximately 1,000 people with disabilities in BC who employ their own personal support staff. NetCents, in conjunction with World Accessibility, is customizing its payment technology to specifically will allow people with disabilities to accept payments from institutions such as insurance companies, charities or governments in an electronic format that is quick and easy to use. The user can then utilize the system to pay providers such as nurses or attendants online in real time without having to rely on a third party such as a lawyer, accountant or trustee to write and deliver a cheque. NetCents is actively working with key government officials to develop and launch this customized electronic payment system with the end goal to be providing additional independence for those with disabilities.
Employers Forum on Disability (UK)
This organization is the largest disability/corporate partnership in the United Kingdom and possibly in the world. They are looking to expand and the CEO of Glaxo Smith Kline has taken on the role of spearheading a Global Employers Forum Initiative. Mr. Jones, a NetCents partner is an advisor to the Employers Forum and has introduced the concept of NetCents to this organization.
It is NetCents intent to focus on these two very large and growing communities. The Company believes that these two initiatives will prove to be key in NetCents becoming one of the largest global payment providers in the world.
On4Communications is a development stage company focused on wireless and online payment technologies. On4 is actively looking for acquisitions and merger opportunities within these industries. On4 has identified NetCents Systems Ltd., (www.net-cents.com), a technology company that is on the verge of establishing itself as a global contender in the online payment industry. On4 has a signed agreement in place with NetCents and will be facilitating the global rollout of the NetCents platform.
On December 15, 2011 On4 entered into a definitive Share Exchange Agreement with NetCents Systems Ltd. ("NetCents") where at closing On4 will acquire 100% of the issued and outstanding shares of NetCents and NetCents will become a wholly owned subsidiary of On4. The Company is a Development Stage Company, as defined by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 915, Development Stage Entities, and has not yet generated significant revenues from their intended business activities.
NetCents is an integrated, international financial transaction hub that delivers a 100% secure, self-administered and anonymous payment system developed for the purpose of making safe online purchases and money transfers.
The NetCents technology is simple, innovative and works in harmony with existing banking platforms. NetCents provides the merchant with the means to connect with all consumers whether or not they hold direct access to a credit card. Triggered by a valid email address, it provides a real-time, two-way flow of funds over the web while protecting users from identity theft or credit card fraud and can significantly reduce transaction costs for Merchants and consumers.
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See ON4's filings with the United States Securities and Exchange Commission which may identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.
SOURCE On4 Communications, Inc.