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Mr. Osvaldo Iadarola reports
Audiotech Healthcare has acquired an additional 40-per-cent interest in Audiology & Hearing Aid Services Inc., thereby increasing its interest in AHAS to 90 per cent. Audiotech acquired its original 50-per-cent interest in AHAS in July, 1998. To acquire the additional 40-per-cent interest in AHAS, Audiotech paid total consideration of $153,000 (U.S.) in cash, satisfied using proceeds from Audiotech's recent debenture financing and existing working capital. Furthermore, Audiotech has negotiated an option to acquire the remaining 10-per-cent interest in AHAS for a cash payment of $42,500 on or before Sept. 1, 2001.
AHAS currently operates hearing care clinics in Idaho Falls and Rexburg, Idaho, which generate combined annual revenues of approximately $1-million. Gerald Mill, PhD, the founder of AHAS, has agreed to remain as a director of AHAS following the completion of the transaction. Mr. Mill has been instrumental in the growth and successful operation of AHAS since its inception.
Commenting on the acquisition, Audiotech president and chief executive officer, Osavaldo Iadarola, said: "AHAS has proven to be one of our most profitable business units. We fully anticipate that this transaction will have a meaningful positive contribution to Audiotech's operating earnings. Of equal importance, we feel that we have proven the success of our U.S. acquisition model from both an operational and financial perspective. The experience derived from our acquisition of AHAS will be employed as we continue to seek further acquisitions in the Northwest U.S. We presently have negotiations ongoing on several fronts and hope to be in a position to announce a definitive agreement shortly."
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