TORONTO, Ontario. November 10, 1998.
SoftQuad International Inc. announced today that the assets of its subsidiary, SoftQuad Inc., have been sold to a new private company, the principal shareholders of which are a private investor and certain employees of SoftQuad Inc. Also included in the sale is SoftQuad U.K., the company's European distribution subsidiary.
As consideration for the transaction, which SoftQuad International Inc. is valuing at CND$1.39M, the new company has assumed substantially all of the liabilities of SoftQuad Inc. and SoftQuad U.K., and has issued 19% of its shares to SoftQuad International Inc.
By selling the assets of SoftQuad Inc., rather than SoftQuad Inc. itself, SoftQuad International Inc. retains the Canadian tax loss carry forwards associated with SoftQuad Inc.
Richard Rabins, CEO of SoftQuad International Inc. said: ``The sale of the assets of SoftQuad Inc. represents the final part in the implementation of our previously announced strategy of divesting SoftQuad Inc., so that we can focus on our children's video game business.''
About SoftQuad International
Alpha Software Corporation (Alpha, Alpha Software), based in Burlington, Mass. is a wholly-owned operating company of SoftQuad International Inc.
Alpha Software owns controlling interest in NewKidCo LLC, a joint venture publishing video games for young children on ``next generation'' game console systems. NewKidCo's mission is to become the leading provider in the children's video game category with such popular licensed properties as Sesame Street's `Elmo' from Children's Television Workshop(R) and Steven Spielberg presents TINY TOON Adventures(R) from Warner Bros. NewKidCo's products are sold nationwide through the retail channel. For more information please visit http://www.newkidco.com
Sesame Street is a registered trademark of Children's Television Workshop. PlayStation is a registered trademark of Sony Computer Entertainment Inc. All other names are trademarks or registered trademarks of their respective companies.
Press material can be accessed at http://www.softquadintl.com
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risk and uncertainties, including without limitation risks of intellectual property rights and litigation, risks in technology development and commercialization, risks in product development and market acceptance of and demand for the Company's products, risks of downturns in economic conditions generally, risks associated with competition and competitive pricing pressures, risks associated with foreign sales, risks associates with the sell-through of products in the sales channels, risks associated with customer concentration and other risks detailed in the Company's filings with the Securities and Exchange Commission.
SoftQuad International Inc.
Steven H. Schneider
Tel: +1 781/229-2924