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DollarDays International, an online wholesaler and closeout company, has merged into Insignia Solutions PLC, a United Kingdom legal entity listed on the National Daily Quotations Journal under the symbol INSGY.PK. Under the terms of the agreement, DollarDays' business assets and operations were merged into a subsidiary of Insignia, in exchange for the issuance of American Depository Receipts ("ADRs") for approximately 73.3 million Insignia ordinary shares to DollarDays' shareholders.
This will result in a combined company that has generated unaudited revenues for the five months ended May 31, 2008 of just over $4 million, and has approximately $3 million in cash and cash equivalents after closing of the transaction.
After the transaction, which closed on June 23, 2008, and after the issuance of approximately 7.7 million ADRs that raised $1 million in a concurrent private financing transaction, current Insignia ADR holders will own approximately 37 percent of the ongoing combined company. Approximately 52 million new ADRs were issued and the remainder will be issued following shareholder authorization of an increase in Insignia's authorized share capital.
The merger did not require approval by Insignia shareholders. Peter Engel, chairman and CEO of DollarDays, was appointed to the same positions of Insignia. "We are thrilled to have completed this merger with Insignia. This is a significant step in the advancement of our company," Engel said.
"Not only will this transaction provide us with greater access to raising capital, but it will also allow us to use our shares as currency for strategic acquisitions within the multi billion dollar small reseller market. DollarDays operates in an attractive market with the potential to grow rapidly. We believe that with prudent use of the cash within the company, we can significantly increase our growth rate and deliver value to shareholders," he added.
DollarDays serves small businesses and entrepreneurs and is designed to help them compete against larger enterprises that buy bulk wholesale merchandise products. The company offers approximately 25,000 products, which are sold by the case.
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