Sarasota, FL 4/3/2008 10:05:00 PM
WorldGate (OTCBB: WGAT) Receives Cash Infusion from Long-Term Agreement
Pennycents Magazine Reports on Worldgate
Pennycents Magazine, the market’s most valuable research tool covering micro-cap, penny stocks and otcbb equities, issued the following daily column by Lester Young.
WorldGate Communications, Inc. (OTCBB: WGAT), an industry leader in the design, manufacture and distribution of videophones and related technologies, has announced the signing of a long-term agreement with Aequus Technologies Corporation. Maker of the Ojo line of videophones for business and home applications, WorldGate markets its products to individuals through standard consumer electronics distribution outlets as well as to high-speed data (HSD) network operators.
Aequus is the parent company of Snap! Telecommunications, which provides Video Relay Services (VRS) and Video Remote Interpreting (VRI) services for the deaf and hearing-impaired.
In addition to resolving recent disputes between the two companies, the new accord allows both entities to explore and develop individual business opportunities while at the same time working together to enhance the Ojo product line. Specifically, the contract calls for ongoing purchases of the videophones by Aequus, including near-term transactions worth roughly $1.5 million. Additionally, Aequus will pay WorldGate $5 million in cash for support and training that will allow Snap! Video Relay Services to build and operate its own data center, and Aequus is also conveyed the right to contract with WorldGate on other development projects in the future.
The agreement will not only provide WorldGate with a substantial cash infusion that can be useful in operational growth and expansion, it also ensures that the company's Ojo videophones will serve as a cornerstone of Aequus' service offerings both now and into the future.
The writer does not own shares in the above stocks.
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