Blue Vista Technologies Inc.

November 05, 2009 16:18 ET

Blue Vista Enters into Letter of Intent

TORONTO, ONTARIO--(Marketwire - Nov. 5, 2009) - Blue Vista Technologies Inc. (NEX BOARD:BV.H) (the "Company" or "Blue Vista") Blue Vista is pleased to announce that the Company has entered into a Letter of Intent (LOI) dated October 27, 2009 with SKA International Inc. ("SKA"), whereby Blue Vista would, subject to a number of conditions, acquire all of the issued and outstanding securities of SKA. SKA is Canadian company which has signed a Joint Venture Agreement (JV) with China Shandong LuKe Group Company (Shandong LuKe), a call centre and Value Added Services (VAS) provider servicing the Chinese market based in Jinan City, Shandong Province, PRC. The LOI will allow Blue Vista the opportunity to perform due diligence on the SKA joint venture with objective of preparing a Formal Agreement. Should the Formal Agreement be consummated the ensuing transaction would result in a change of business ("COB") or reverse takeover ("RTO") and the Company's reactivation and graduation from the NEX to the TSX Venture Exchange.

The Joint Venture company formed by SKA and Shandong LuKe is: Shandong Mei Long Sci-Tech Co. Ltd. By the terms of the JV agreement, SKA International will be a 49 per cent partner and Shandong Luke Group will own the remaining 51 percent of the newly formed JV. SKA is to provide financing for the new JV and Shandong LuKe will provide its operating assets. Shandong LuKe will transfer all of its revenue generating assets to the new JV.

Shandong Luke is a telecommunications service company that has been in operation since 1992 and has approximately 2,000 employees. It operates in-coming and out-going call centres in the cities of Jinan and Tai'an. The company is a well established and profitable call centre and value added service provider to the major telecom companies in China including China Mobile and China Telecom, the largest telecom provider in the world. Shandong LuKe's business relationship with China Telecom makes Shandong LuKe a dominate player in the industry.

More information on the JV will become available as the company proceeds with its due diligence review. The company also intends to raise funds through a private placement in connection with its review of SKA, terms to be determined.

Completion of the transactions is subject to a number of conditions, including Exchange acceptance and disinterested shareholder approval. The transactions cannot close until the required shareholder approval is obtained. There can be no assurance that the transactions will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Management Information Circular and/or Filing Statement to be prepared in connection with the transactions, any information released or received with respect to the COB or RTO may not be accurate or complete and should not be relied upon. Trading in the securities of Blue Vista should be considered highly speculative.

Forward-Looking Information

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Blue Vista Technologies Inc. (the "Company") expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

Shares Outstanding: 3,905,695

Neither the NEX nor the TSX Venture Exchange have in any way passed upon the merits of the proposed transaction and have neither approved nor disapproved the contents of this press release.

Contact Information

  • Blue Vista Technologies Inc.
    Mr. Alex Falconer
    (416) 862-8243
    (416) 862-7214 (FAX)