SOURCE: The Amergence Group

The Amergence Group

February 10, 2010 16:00 ET

Amergence Announces SeriousMumbo Letter of Intent Has Been Terminated

PHOENIX, AZ--(Marketwire - February 10, 2010) - The Amergence Group (PINKSHEETS: AMNG) announced earlier today that the Letter of Intent it had signed last year with technology company SeriousMumbo has been terminated by consent of both parties. The original Letter of Intent was announced on May 10, 2009.

According to the LOI, Amergence was expected to provide funding, services and space for the promising new company in exchange for a portion of SeriousMumbo's equity. However, an ongoing lawsuit between Amergence and its former counsel, David Kahn, hampered Amergence's ability to attract enough new investment to make good on its commitment.

Over the past year, The Amergence Group has made various settlement offers to Mr. Kahn, but each was either ignored or rejected. Allegedly, Mr. Kahn maintains he has a security interest on everything Amergence owns until his claim is paid. Understandably, SeriousMumbo balked at allowing Mr. Kahn to have any interest in its new technology since the new technology company has never had any previous involvement with the attorney.

Kahn has rejected the idea of isolating new Amergence business from current Amergence assets on which he maintains a continuing interest. According to Peter Jacobs, Amergence's president, "Mr. Kahn's refusal to separate older assets from newer ones (for the purposes of his security interest) will make the Company's job of attracting venture partners extremely difficult until the suit is settled or decided in court. Ironically, it is Mr. Kahn's intractability that is actually impeding Amergence's ability to pay him."

Amergence will continue to focus its new business opportunities toward Hong Kong and its alliance with PanPacific Business.


The Amergence Group (PINKSHEETS: AMNG) provides valuable advice and support to new businesses with its goal of accelerating their intended plans to introduce edgy, disruptive, and/or innovative technologies to the world market.

The Company's 8-year-old Tranzbyte division remains focused on the development and marketing of its group of optical media enhancement technology worldwide such as FLASHAlbum™, a technology which enables distributors of optic disc media (CD's and DVD's) to combine the best features of both on one USB flash drive.

Statements contained in this release, which are not historical facts, may be considered "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and the current economic environment. We caution the reader that such forward-looking statements are not guarantees of future performance. Unknown risk, uncertainties as well as other uncontrollable or unknown factors could cause actual results to materially differ from the results, performance or expectations expressed or implied by such forward-looking statements.

Contact Information

  • Contact:
    Peter H. Jacobs
    Managing Director
    14220 N. Northsight Blvd., Suite 139 (Parkside)
    Scottsdale, AZ 85260
    (480) 443-1600