Shares to be Returned Immediately
TUCSON, Ariz., June 23 /PRNewswire/ -- Wavetech International, Inc.
(OTC Bulletin Board: ITEL) announced today that Wavetech and DCI
Telecommunications (OTC Bulletin Board: DCTC) of Stratford, Connecticut have
terminated the agreement executed in February 1999. As part of that
termination, the companies returned their respective shares of Common Stock
that had been issued to each other. The decision to terminate the agreement
and undo the stock swap follows the termination of a merger agreement between
Wavetech International and DCI Telecommunications and the ceasing of all
business agreements between the two companies.
The share exchange agreement was signed on February 26, 1999 and called
for DCI to acquire 568,846 common shares of Wavetech, representing
16.6 percent of the Company's outstanding shares. In turn, Wavetech acquired
576,047 of DCI's common shares, representing 2 percent of DCI's outstanding
shares.
The Wavetech stock has been returned to its transfer agent as authorized
but unissued capital stock. The effect of the terminated stock swap will
reduce Wavetech's total asset value by $1,421,684. This change will be
reflected in the Company's financial statements for the year ending August 31,
1999 to be included in its Annual Report and 10-K.
Wavetech International, founded in 1993, is a facilities-based
communications company. In May 1999, Wavetech changed its business focus from
traditional calling card services to next generation long distance services
using Internet Protocol (IP). Wavetech delivers integrated voice, fax and
data over a variety of digital networks, including the Internet, frame relay,
dedicated data or traditional circuit-switched networks to corporate,
wholesale and retail clients. The Company's services utilize proprietary
software developed by Softalk, Inc. Through a worldwide licensing agreement
with Softalk, Wavetech also provides marketing, sales, customer service and
online billing for both Wavetech and Softalk clients.
This press release contains certain forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. This information may involve risks and uncertainties that
could cause actual results to differ materially from such forward-looking
statements. Factors that would cause or contribute to such differences
include, but are not limited to, those factors detailed by Wavetech in its
filings with the Securities and Exchange Commission.
For additional information, contact Bill Roberts, CTC Inc. at
(937) 434-2700 or Ken Paneral, CTC Inc. at (847) 729-8521.
SOURCE Wavetech International, Inc.
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CONTACT:
Bill Roberts, 937-434-2700, or Ken Paneral,
847-729-8521, both of CTC, Inc. for Wavetech International, Inc.
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