News

Greenland sells controlling interest to imaging products firm

August 13, 2002

CARLSBAD, Calif. -- Information technology firm Greenland Corp. (OTCBB:GLCP) has reached an agreement to sell a controlling interest in the company to imaging products developer Imaging Technologies Corp. (OTCBB:IMTO), a deal the two companies said would create synergies between their firms.

Subject to approval from Greenland shareholders, the company will sell 60 percent of its issues and outstanding shares to Imaging Technologies for $2.25 million. The shares will be purchased through a convertible note issued by Imaging Technologies. Under the terms of the deal, Imaging Technologies can purchase an additional 30 percent of Greenland subject to achieving certain sales levels.

As part of the deal, Imaging Technologies will relocate its operations from San Diego to Carlsbad, Calif., and share office space with Greenland. Imaging Technologies officials said the net savings should exceed $1 million annually.

Greenland has focused its efforts on the enhanced financial services market over the past year, developing and marketing the MAXcash ABM, an automated check-cashing kiosk with ATM functionality. The company has not made any announcements on MAXcash ABM deployments this year, and reported losses of $2.4 million on no revenue for the first quarter of fiscal year 2002, ending March 31.

Imaging Technologies produces imaging products and provides professional employer organization (PEO) services. For the quarter ending March 31, the company reported a net loss of $1.1 million on revenue of $9.4 million.

"We believe that, with the active assistance of ITEC, our entry into the PEO business will serve to build Greenland into a substantial provider of financial and personnel services," Tom Beener, Greenland chief executive officer, said in a news release. "There are synergies between our check-cashing/payroll-advance service and PEO service for employers."

In early trading on Aug. 14, Imaging Technologies was at 7 cents, down a penny on the day. Greenland was unchanged at 9/100ths of a penny.