Elinear (AMEX:ELU)
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From Jun 2019 to Jun 2024
eLinear, Inc. (AMEX:ELU) announced today that it signed
a Letter of Intent to acquire the operating assets of SweetWater
Security Systems, LLC, a Houston-based provider of complex wireless
video security systems for Public Housing Projects throughout the
Southeastern United States. In the transaction, it is contemplated
that eLinear will issue 25,000,000 shares of its common stock from
authorized but unissued shares for certain assets of SweetWater. Those
assets consist of certain accounts receivable, equipment, inventory
and up to $3 million in cash. SweetWater primarily operates in
Louisiana, Mississippi, Alabama, and Tennessee and has completed over
$3 million in projects to date. SweetWater has a substantial pipeline
of future business opportunities.
Tommy Allen, Chief Executive Officer of eLinear, stated, "The
SweetWater acquisition is a big step forward in our efforts to expand
our offerings of advanced security design and implementation. This
acquisition is synergistic by bringing together eLinear's expertise in
cutting edge network design and SweetWater's success in wireless
security technology. Our intent is to expand the SweetWater technology
into commercial applications with our large and enterprise accounts."
Mike Hardy, President and Chief Financial Officer of eLinear, added,
"This acquisition is part of the new management team's goal to
accelerate our growth and to achieve profitability. In addition to
growing gross profit, cost cutting is ongoing at every level. These
efforts should provide the combined companies with the tools and
vehicle to continue our growth with the goal of delivering an enhanced
value proposition to shareholders."
Donald Bresina, Chief Executive Officer of SweetWater Security
Systems, stated, "We are excited to be able to grow our company by
combining with a leader that has a market-driven, entrepreneurial
approach to the technology services business. Combining our history of
success in closing large high profile engagements with eLinear's team
of professionals in design and installation should give us a distinct
competitive advantage. Operating as part of a public vehicle will
enable us to gather the resources to continue our growth rate."
The transaction will be subject to the signing of a definitive
agreement, satisfaction of standard closing conditions by both
parties, and approval by eLinear shareholders. It is contemplated that
Don Bresina will be added to the eLinear Board of Directors at
closing.
eLinear believes that it has addressed certain reporting issues
with the SEC and the American Stock Exchange by filing required
restatements of financial statements previously filed for periods in
calendar years 2004 and 2005 and by filing its Form 10-QSB for the
quarter ended September 30, 2005 and its Form 10-KSB for the year
ended December 31, 2005. The company expects to file its Form 10-QSB
for March 31, 2006 soon in its efforts to regain compliance with the
timely reporting requirements of the AMEX Company Guide.
About eLinear, Inc.
eLinear, Inc. is a communications, security and compliance company
providing integrated technology solutions including information and
physical security, IP Telephony and network and storage solutions
infrastructure. Typically, the company's customers are Fortune 2000
and small to medium sized business organizations. eLinear's services
are offered to companies seeking to increase productivity or reduce
costs through investing in technology. eLinear has a national and
international footprint and has its headquarters in Houston, Texas.
For more information, see http://www.elinear.com.
Safe Harbor Statement
This press release contains statements that may constitute
forward-looking statements, including the company's ability to realize
the projected revenues from the newly announced project orders and the
future strength of the company's business and industry. These
statements are based on current expectations and assumptions and
involve a number of uncertainties and risks that could cause actual
results to differ materially from those currently expected. For
additional information about eLinear please visit www.elinear.com or
www.sec.gov. eLinear undertakes no obligation to update any
forward-looking statement that may be made from time to time by or on
behalf of the company, whether as a result of new information, future
events or otherwise.