AmbiCom Holdings’ Asset Purchase Agreement Reached Closing
MILPITAS, CA–(Marketwired – May 14, 2014) – AmbiCom Holdings, Inc. (OTCQB: ABHI), a leading designer and developer of innovative wireless hardware and software products targeting the healthcare market with more than one million devices sold worldwide, today announced that it has reached closing the Asset Purchase Agreement with Veloxum Corporation, a performance management company that specializes in optimizing complex IT environments.
AmbiCom will issue a total of 13,100,437 common stock shares for the Asset Purchase. 6,550,218 shares can legally become unrestricted on the first anniversary of the closing date. The remaining shares can legally become unrestricted on the second anniversary of the closing date.
Kevin Cornell will be positioned as the President of AmbiCom. Mr. Cornell was the former CEO and co-founder of Veloxum Corporation and previously the COO of Symphoniq (now Coradiant). Michael Lazar will be positioned as the CTO of AmbiCom. Mr. Lazar was the former CTO and co-founder of Veloxum and previously the VP of Network Physics.
“Revenue growth for the next 12 months conservatively estimated to be between $5 million to $10 million with this new product potential and client list,” stated AmbiCom Chairman and CEO, John Hwang.
“With only a 1% global Managed Server Provider penetration, we can estimate $18.2 million revenue within the first year,” stated the new President of AmbiCom, Kevin Cornell. The global application server market is expected to grow at a 21.95% Compound Annual Growth Rate (CAGR) between 2013 and 2018, according to a recent report by ResearchMoz.
About Veloxum Corporation
Veloxum actively and continuously optimizes physical and virtual infrastructure by optimizing operating system and application settings. It leverages the existing systems and infrastructure by tuning the various components within their manufacturer supported settings. The solution enables IT organizations to maximize performance, increase workload density, and minimize virtualization costs, ultimately spending less on the physical infrastructure, thus dramatically reducing CAPEX and OPEX expenditure.
Customers such as Watermark Industries, Baron Funds, Colgate Palmolive, Integrated Axis, Deutsche Bank, the United States Department of Energy, and Maimonides Medical Center are enjoying significant cost savings with Veloxum. Veloxum, headquartered in Scotts Valley, California, was founded in September, 2007 and was awarded the Gartner “Cool Vendor” award in 2012 in the category of infrastructure management.
About AmbiCom Holdings, Inc.
AmbiCom is headquartered in Milpitas, California, and is a leading designer and developer of wireless products focusing on Wi-Fi and Bluetooth® applications for the wireless medical, healthcare and automotive industries. AmbiCom purchases standard wireless products and designs and develops features and packaging to customize these products to its target OEM markets, including a new SDIO card to be sold to its OEM customers. AmbiCom believes there are unique opportunities as a result of the sheer size of the wireless healthcare market and the Company’s innovative approach and exemplary customer services. AmbiCom also designs and develops wireless home medical devices for non-health care applications for the retail market, including solar ionic toothbrushes that in general utilize light to activate an ionic process to remove plaque. The Company also expects to continue to expand on its non-recurring engineering projects. For more information, visit www.ambicom.com.
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Although forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements, including but not limited to our ability to maintain our website and associated computer systems, our ability to generate sufficient market acceptance for our products and services, our ability to generate sufficient operating cash flow, and general economic conditions. Readers are urged to carefully review and consider the various disclosures made by us in our reports filed with the Securities and Exchange Commission from time to time which attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results of operation and cash flows. If one of more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.
AmbiCom Holdings Inc.
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