CounterPath Closes Acquisition of NewHeights
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Company to expand its VoIP product suite to accelerate its growth strategy
VANCOUVER, Aug. 2 -- CounterPath Solutions, Inc. (OTCBB: CTPS), a leading provider of multimedia VoIP (Voice over Internet Protocol) softphones and SIP applications, announced today that it has closed its acquisition of NewHeights Software Corp., a developer of IP communication software for enterprise customers.
CounterPath will combine its existing software applications and solutions with NewHeights' enterprise and IP applications to expand its suite of products. With this additional depth, CounterPath is able to accelerate its growth strategy and offer a wider array of product and technology solutions to existing and new Service Provider, Original Equipment Manufacturer and Value Added Reseller customers.
"We are excited about the future for the combined company and will continue to build on the CounterPath mission to be the dominant endpoint for fixed, mobile and FMC (Fixed Mobile Convergence) operators and infrastructure providers across all desktop, embedded and mobile device platforms," said Greg Pelling, CEO of CounterPath.
Under the terms of the agreement, CounterPath has agreed to issue 40,250,000 shares of common stock for all of the shares of NewHeights, of which 1,849,180 shares are being issued by a wholly-owned subsidiary of CounterPath and are exchangeable into CounterPath shares of common stock on a one-for-one basis. On closing, CounterPath converted its existing convertible debentures in the amount of $4 million to 10 million shares of common stock. In addition, CounterPath completed a private placement of $1.3 million issuing 3.25 million shares of common stock at $0.40 and entered into subscription agreements to raise an additional $4.2 million through the issuance of 10.5 million shares of common stock at $0.40 per share to Wesley Clover, a leading global investment firm led by Sir Terence Matthews, and a group of existing investors.
With the close of the acquisition, CounterPath welcomes new members to its board of directors and changes to the executive team:
o Sir Terence H. Matthews, Chairman of the Board - Matthews is one
of Canada's leading telecommunications entrepreneurs. He is
founder of a number of world-renowned technology companies
including Newbridge Networks and Mitel Corporation. In addition to
his involvement in CounterPath, Matthews is Chairman of Mitel,
March Networks and private equity firm Wesley Clover.
o Owen Matthews, Vice-Chairman of the Board - Matthews is co-founder
and former CEO of NewHeights. Matthews was the visionary who
sought to develop an intuitive, next-generation software client
that would bring together the power of both the telephony and data
networks in an intuitive graphical interface and ultimately
provide users with simplicity and usability in the management of
their IP communications environment.
o Mark Bruk, Vice-Chairman of the Board - Bruk is founder and former
CEO of CounterPath. Bruk is a technology pioneer and the visionary
behind a number of early-to-market Internet applications including
CounterPath's SIP-based softphones X-Lite, eyeBeam and Bria.
o Greg Pelling, CEO and Director of the Board - Prior to joining
CounterPath, Pelling was president of NewHeights. Pelling is a 20-
year technology and IT industry veteran whose career includes work
with Cisco Systems Inc. and PricewaterhouseCoopers.
o Donovan R. Jones, President, COO and Director - Jones will
continue to manage day to day operations and is responsible for
strategic and financial initiatives that drive CounterPath's
overall growth.
About CounterPath Solutions
Since 2003, CounterPath Solutions, Inc. has been creating value for its clients with the development of innovative multimedia VoIP (Voice over Internet Protocol) softphones and SIP applications. CounterPath's flexible, user friendly and feature-rich product suite enables clients to cost-effectively integrate or bundle voice, video, presence and IM applications into their VoIP solutions. CounterPath's clients include some of the world's largest telecommunications service providers and network equipment providers including AT&T, BT (British Telecommunications PLC), Alcatel-Lucent and Cisco Systems. For more information, please visit www.counterpath.com.
Source: CounterPath Solutions, Inc.
