Infrastructure Developments Corp. Issues Update on Planned Acquisition
SALT LAKE CITY, UT, Jul 25, 2012 (MARKETWIRE via COMTEX) -- Infrastructure Developments Corp. (OTCBB: IDVC) (the "Company") announced today that the Company is no longer pursuing the closing of the acquisition of InterMedia Development Corporation.
In December 2011, the Company decided to evaluate the potential acquisition of InterMedia, a media production company and defense contractor based in Fairfax, Virginia. The Company and Intermedia proceeded to perform due diligence. Based upon the review of this due diligence the Company determined that it would not be possible to raise the funds required to expand InterMedia as agreed. Accordingly, both parties have determined it is in their best interests not to proceed with the acquisition.
"While we had confidence in InterMedia's business plan, when we completed our due diligence we determined that we would be unable to raise the funds needed to grow the acquired entity," commented Eric Montandon, director of the Company. "Our experience with contracts for the US military -- where competition is heavy and margins are narrow -- also contributed to our decision to terminate the acquisition plan. We are now looking at options with high profit potential, and we are confident that we can complete the acquisition of a particular candidate by early September."
In order to prepare for the acquisition of another company, the Company plans to repay all of its outstanding convertible debt totaling approximately $50,000 that will become convertible beginning in September 2012, prior to any such conversion. Arrangements have been made to pay off this debt, which will allow the Company to cancel common stock reserved for conversion.
Forward-Looking Statements:
A number of statements contained in this press release are forward-looking statements. These forward-looking statements involve a number of risks and uncertainties including the Company's development, its ability to procure design and management projects, competitive market conditions, and its s prospects for securing additional sources of financing as required. The actual results that the Company may achieve could differ materially from any forward-looking statements due to such risks and uncertainties. The Company encourages the public to read the information provided here in conjunction with its most recent filings on Form 10-Q ( http://sec.gov/Archives/edgar/data/1389415/00...-index.htm ) and Form 10-K ( http://sec.gov/Archives/edgar/data/1389415/00...-index.htm ). The Company's public filings may be viewed at www.sec.gov .
Contact: Infrastructure Developments Corp. Eric Montandon Director 801.488.2006 eric@idvc.us
