SAN MATEO, Calif.--(BUSINESS WIRE)--Etelos, Inc., a leading provider of SaaS for businesses of any size, today announced the closing of its reverse merger into Tripath Technology Inc. (Pink Sheets:TRPH). Through this transaction, Etelos becomes a public reporting company. The Etelos executive team will maintain control of the new entity and has applied for a new stock symbol.
“This is a significant step in the growth of our company,” said Jeffrey L. Garon, president and CEO. “We now feel we are positioned to execute on our vision of providing data ubiquity. This is accomplished through our SaaS model which includes a Platform as a Service (PaaS), a Marketplace for distribution and many cool Web apps for businesses and users alike. In the past year, we have made significant enhancements to the Etelos Marketplace™ and the Etelos platform, which come together in a revolutionary ecosystem for the development, distribution and consumption of Web Applications. These enhancements include the recent launch of Etelos AOP™ Beta, Etelos App Sync™ and Version 6 of the Etelos Application Server™. Together, these products create a platform agnostic distributed computing environment.
“Etelos continues to bring together innovative application developers, distributors and users in an open standards-based environment that fosters freedom of choice, reliability, security and scalability. The completion of our merger is expected to allow us to more cost-effectively raise the capital we need to take our company to the next level,” continues Garon.
Etelos recently announced new technology that enables true data ubiquity and application portability beyond simple online and offline synchronization. Etelos has filed multiple patent applications for technology that enables browser-based applications to function offline, reconcile changes made while offline, and synchronize data with any other application running in the cloud that is enabled with Etelos AOP and Etelos App Sync.
Under the terms of the merger agreement, each issued and outstanding share of Etelos capital stock, other than shares held by Etelos stockholders who are not "accredited investors" or who have not appointed a "purchaser representative," will be cancelled and extinguished and converted into shares of Tripath common stock at a ratio of 3:1. Each share of Tripath common stock immediately before the effective time will be cancelled and extinguished and no payment or other consideration will be made with respect to those shares. Further, in addition to the shares of Tripath common stock to be issued to Etelos shareholders in the merger, the surviving corporation will issue, in the aggregate, 5,010,000 shares of Tripath common stock to satisfy Tripath's obligations to creditors and other third parties as contemplated by the Plan of Reorganization, subject to further order of the Bankruptcy Court. As a result of the plan of reorganization, no liabilities of Tripath were acquired in the merger.
About Etelos, Incorporated
Etelos provides on-demand browser-based applications on the hosting environment that you choose. Etelos' technology for developing and deploying on-demand applications is revolutionizing the world of software distribution. The Etelos MarketplaceTM gives developers an easy way to license, distribute and host their applications, and businesses a wide selection of fully customizable, on-demand applications. Etelos, Etelos CRMTM, Etelos ProjectsTM, and Etelos Marketplace are trademarks of Etelos, Incorporated; other trademarks are the property of their respective owners. For more information about Etelos, please visit www.etelos.com.
"Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding the business of Etelos which are not historical facts may be "forward-looking statements” that involve risks and uncertainties. Forward-looking statements include, among other things, statements concerning the merger with Tripath, the issuance or conversion of shares in Etelos, the effect of the merger on our business and operating results, the future financial performance of our company, the acceptance of our products and services, the success and timeliness of our product and platform roll-out and other statements qualified by words such as "anticipate," "believe," "intend," "may" and other words of similar import. These statements are neither promises nor guarantees, but involve risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including, without limitation: any statements concerning the merger, merger consideration, the effect of the merger on our business and operating results, and the future financial performance of our company. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors” in the Company's reports that Etelos files from time to time with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and Etelos undertakes no obligation to update publicly any forward-looking statement for any reason, except as required by law, even as new information becomes available or other events occur in the future.