Resolve Announces Close of Supply Chain Management Operations Sale
TORONTO, ONTARIO, Jul 06 (MARKET WIRE) --
Attention Business and Financial Editors:
Resolve Corporation (TSX: RBO.UN), a Canadian leader in business process
outsourcing (BPO), announced today the close of the sale of its Supply
Chain Management (SCM) operations to Archway Marketing Services, a
leading North American outsourced marketing services organization.
The asset sale, which was initially announced on May 27, 2009, provides
net proceeds to Resolve of approximately $21 million. In this transaction
Archway has acquired Resolve's SCM operation assets including client
contracts, eight American locations and five Canadian locations, as well
as the approximately 800 employees currently servicing the business for
Resolve.
The transaction does not include Resolve's Saint John, NB, supply chain
facility, which is focused on Coupon and Rebate processing, and will
continue as an important component of Resolve's operation.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
This press release may include certain statements that constitute
forward-looking information within the meaning of applicable securities
laws ("forward-looking statements"). Such forward-looking information may
involve known and unknown risks, uncertainties and other factors that may
cause the actual results, performance or achievements of Resolve, or
industry results, to be materially different from any future results,
performance, achievements or opportunities expressed or implied by such
forward-looking information. This forward-looking information includes
estimates, forecasts and statements as to management's and others'
expectations with respect to, among other things, growth strategies and
the outlook for Resolve and the business process outsourcing industry and
may use words such as "may", "will", "estimate", "expect", "anticipate",
"believe", "intend", "plan", "could", "continue" and other similar
terminology. This information reflects current expectations regarding
future events and operating performance and speaks only as of the date of
this press release. Forward-looking information involves significant
risks and uncertainties and should not be read as a guarantee of future
performance or results and will not necessarily be an accurate indication
of whether or not such results will be achieved. A number of factors
could cause actual results to differ materially from the results
discussed in the forward-looking information, including, but not limited
to, loss of key customer contracts or reduction of services purchased by
key customers, foreign exchange rates, increases in costs to Resolve that
cannot be passed on to customers, disputes with key customers,
competition, the ability of Resolve to manage operations and execute
growth strategies, stability of internal and government information
systems and technology, technological changes, the ability to maintain
software licenses, changes in privacy laws, and risks inherent in bidding
on government contracts. These risk factors are discussed in greater
detail under "Risks" on page 14 of Resolve's MD&A for the period ended
December 31, 2006, which is available on SEDAR at www.sedar.com. Although
the forward-looking information contained in this press release is based
upon what management believes are reasonable assumptions, Resolve cannot
assure that actual results will be consistent with this forward-looking
information. This forward-looking information is made as of the date of
this press release, and Resolve assumes no obligation to update or revise
it to reflect new events or circumstances.
Contacts:
Investor Contact:
Resolve Corporation
Gerry McDonald
Chief Financial Officer
905-306-2196
Media Contact:
Resolve Corporation
John Nevins
905-306-2642
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