FoneCash Inc. announced it is in discussions with ITE
(Holding) Limited in Hong Kong to form a joint venture, utilizing a wholly
owned subsidiary of FoneCash, Universal Information Technology Limited in the
formation of a merger company which will eventually be qualified to have its
stock trading on the GEM Board in Hong Kong.
The proposed merger of the two companies would have FoneCash owning 80% of
the stock and infusing its wireless technology and skilled hardware design and
software programming staff, while ITE would inject cash and its SmartCard
ITE is a smart card solution provider and system integrator, utilizing a
combination of smart card system expertise and its extensive software library
to design and implement solutions based upon the requirements of its clients.
FoneCash has experience and technical know-how in wireless transmission of
data, particularly in using RFID (radio frequency identification) technology
for contactless systems. The merger company would focus initially on
developing a Smart Tag contactless system for clients who are concerning with
the organization of inventories of huge amounts of goods such as warehouses,
custom houses, the military, libraries and any enterprise where location of
countless components are stored.
“This merger offers an unprecedented opportunity for the Company with a
chance to implement its business strategy, calling for the merger of its
design capabilities with other like companies who want to utilize a hand-held,
wireless processing unit”, stated Daniel E. Charboneau, Chairman and CEO of
Fonecash. “Given our relatively early entrance in the Hong Kong market”, added
Mr. Charboneau, “we are pleased to have the support of ITE, their investors
and their outstanding position in Hong Kong, recently reinforced by their sale
of shares on the GEM Board. Their position will undoubtedly lead other
investors to take a serious look at the merger company and lead to value for
the investors of both parent companies”.
About FoneCash Inc.
Under an exclusive licensing agreement, FoneCash, Inc designs, develops
and manufactures electronic terminals for processing credit and debit cards of
all the major banks issuers whose cards are accepted for payment by merchants
worldwide. The Company’s products includes software and proprietary processing
services that provide end-to-end support of electronic financial transactions,
utilizing wired and wireless networks for the transmission of data. The
Company intends to market a complete processing system that is high quality
and simple to operate. Revenues will be generated from sales/rentals of the
terminals and from transaction charges.