TMCnet News
Florida-Based Global Digital Solutions, Inc. Completes Reverse Merger with Creative Beauty Supply, Inc. of New Jersey The Advanced Communications Solutions Company is Now Trading in the Over-the-Counter Market Using the CVBS Ticker SymbolGlobal Digital Solutions, Inc. (GDSI), which specializes inadvanced communications solutions, today announced that it hascompleted a reverse merger with New Jersey-based Creative BeautySupply, Inc. (OTC: CVBS). The merger agreement was first announced onFebruary 4, 2004. The transaction was formally approved on March 19, 2004 by theshareholders of Creative Beauty Supply (Creative) at their annualmeeting. Creative shareholders also agreed that the name of thecombined company will be Global Digital Solutions, Inc. With completion of the merger, GDSI now owns approximately 87percent of the stock of Creative. Given this ownership percentage,GDSI is considered the acquiring company for accounting purposes andthe transaction will be accounted for as a reverse acquisition ofCreative by GDSI. This transaction enables GDSI to become a publicly traded companyin the over-the-counter market. Initially, GDSI will use Creative'sexisting OTC ticker symbol: CVBS. That symbol is likely to change inthe near future, pursuant to an approval process, to reflect thecompany's name change. The reverse merger between Creative and GDSI resulted in thechange of control of Creative with the issuance of nearly 24 millioncommon shares of Creative stock to GDSI. Technically, in a reversemerger of this kind, Creative is acquiring 100 percent of GDSI andthen changing its name to Global Digital Solutions, Inc. At their annual meeting, Creative shareholders also voted toapprove the following individuals as officers and directors of thecombined company: Richard J. Sullivan (Chairman of the Board); JeromeC. Artigliere (CEO, President, COO and Director); Garret A. Sullivan(Director); Arthur F. Noterman (Director). Richard Sullivan and GarretSullivan are not related. The shareholders also voted to approve theappointment of Rubin, Brown, Gorstein & Co, LLP, of St. Louis, MO, asthe company's public accounting firm. Creative was incorporated in New Jersey on March 15, 1996, as acosmetic and beauty supply distributor. The company's Board ofDirectors approved a spin-off of its wholly owned subsidiary, CreativeBeauty Supply of New Jersey Corporation, to shareholders of record asof December 31, 2003. The company is finalizing the required SECfilings to complete the spin-off. As previously announced, GDSI was formed in late 2003 by formertop executives of Applied Digital Solutions, Inc. (Nasdaq: ADSX),including former Chairman and CEO Richard J. Sullivan and former ChiefOperating Officer Jerome C. Artigliere. GDSI plans to target thelucrative U.S. Government contract market in three specific segments:Communications; Security; and Advanced Parts & Services. On January 8, 2004, GDSI acquired San Marcos, CA-based PacificComTel, a privately held corporation with $15 million in revenue foryear-end 2003 and 126 employees. The Company - a telecommunicationscarrier/integrator, specializing in designing, installing, andmaintaining telephony and data networks using copper and fiber cabling- has developed a host of service solutions designed to optimizeinter-office communications. Jerome C. Artigliere, CEO and President of GDSI, commented: We'redelighted to have completed this transaction so quickly. With thereverse merger now a reality, GDSI has emerged as a publicly tradedcompany. This will enable us to benefit from the growth opportunitiesavailable in the public marketplace. Our single-minded focus is tobuild shareholder value by pursuing the U.S. Government contractbusiness in our areas of expertise: communications, security, andadvanced parts and services. About Pacific ComTel, Inc. Headquartered in San Marcos, California, privately held PacificComTel also has offices in Sacramento, Ontario, and Monterey. Thecompany's primary emphasis is the design, engineering, installationand maintenance of telephony and computer network cabling systems.This includes indoor and outside plant using fiber optic and coppercabling. The Company also designs, implements and maintainshigh-speed, state of the art networks in conjunction with itstechnology partners to provide customers with scaleable, costeffective and reliable systems that meet today's demanding needs andtomorrow's ever-changing requirements. For more information, visit:http://www.pacificcomtel.com. About Global Digital Solutions, Inc. Global Digital Solutions, Inc., (GDSI) is a privately held companywith headquarters in West Palm Beach, Florida. In pursuing thelucrative U.S. Government contract marketplace, the Company hasidentified three key industry segments: Communications; Security; andAdvanced Parts & Services. GDSI's business plan calls for generating70% of its revenues from government contracts and 30% from privatesector services. Statements about the Company's future expectations, includingfuture revenues and earnings, and all other statements in this pressrelease other than historical facts are forward-looking statementswithin the meaning of Section 27A of the Securities Act of 1933,Section 21E of the Securities Exchange Act of 1934, and as that termis defined in the Private Litigation Reform Act of 1995. Suchforward-looking statements involve risks and uncertainties and aresubject to change at any time, and the Company's actual results coulddiffer materially from expected results. The Company undertakes noobligation to update forward-looking statements to reflectsubsequently occurring events or circumstances. |