SANTA ANA, CA -- 12/10/07 --
VillageEDOCS, Inc. (OTCBB: VEDO), a Software
as a Service company providing proprietary on-demand outsource business
solutions, today announced that it has completed the sale of substantially
all of the assets of its wholly owned subsidiary Phoenix Forms, Inc. (dba
"Resolutions") to DocPath Corp. for $970,000 in cash, plus the return of 10
million warrants with an exercise price of $0.15 per share. These warrants
were originally issued as consideration in the acquisition of Resolutions
by VillageEDOCS in April 2005, in addition to $432,000 in cash and
promissory notes in the aggregate of $200,000.
"In November, we received an unsolicited offer for the sale of Resolutions
and, after careful consideration, felt it was in the best interests of the
Company and its shareholders to proceed with the transaction, which we view
as being very positive from a number of perspectives," stated Mason Conner,
Chief Executive Officer of VillageEDOCS, Inc.
"We are quite pleased with the return on our initial investment and the
resulting reduction in our fully diluted share count with the return of the
10 million warrants," Mr. Conner said. "The cash received from this
transaction will enable the Company to significantly reduce its debt with
the immediate satisfaction of a required payment of an $840,000 note due on
December 12, 2007 under an existing line of credit with a financial
institution that is secured by the assets of our GSI subsidiary."
"In addition, our previously announced pending acquisition of Questys,
Inc., which we expect to close by Dec 31, subject to normal closing
conditions, will substantially replace all of the functionality and
services which Resolutions had provided. The acquisition of Questys, with
trailing twelve month sales of approximately $3.6 million and net income in
the range of $250,000 to $300,000, will more than make up for the loss of
revenue and profit from the Resolutions business unit," Mr. Conner added.
About VillageEDOCS, Inc.
VillageEDOCS, through its MessageVision subsidiary, is a leading provider
of comprehensive business information delivery and document management
services and products for organizations with mission-critical needs,
including major corporations, government agencies and non-profit
organizations. Through its Tailored Business Systems subsidiary,
VillageEDOCS provides accounting and billing solutions for county and local
governments. Through its GoSolutions subsidiary, VillageEDOCS provides
enhanced voice and data delivery services. For further information, visit
our website at www.villageedocs.com.
Cautionary Statement Regarding Forward-Looking Information
All statements in this press release that do not directly and exclusively
relate to historical facts constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Statements made in this press release, including, without limitation, those
relating to our belief about the benefits the Company has derived, or may
derive, from pursuing its acquisition strategy or from acquiring Questys,
Inc. or from new management personnel or consultants, and our expectations
regarding future operating results, including such for the remainder of
2007 or 2008, are forward-looking statements. These statements, and other
forward looking statements in this press release, represent the Company's
plans, intentions, expectations and beliefs and are subject to certain
risks and uncertainties that could cause actual results to differ
materially from those projected or expressed herein. These include,
without limitation, risks associated with acquisitions, including Questys
Solutions, such as the inability to complete a transaction or to assimilate
and integrate new operations and retain key personnel, uncertainties in the
market, competition, legal, regulatory initiatives, success of marketing
efforts, availability, terms and deployment of capital, personnel risks,
and other risks detailed in the Company's SEC reports, of which many are
beyond the control of the Company. Trading in the Company's common stock
is limited, and marketability of the stock is restricted by penny stock
regulations and the fact that our common stock is traded on the OTCBB. The
Company does not presently qualify, and may never qualify, to be listed or
quoted on any exchange or other market. The Company assumes no obligation
to update or alter the information in this press release. Investors are
cautioned not to put undue reliance on any forward-looking statements. For
these statements, we claim the protection of the safe harbor for
forward-looking statements contained in Section 21E of the Exchange Act.
Contact:
Mason Conner
Chief Executive Officer
VillageEDOCS
714-368-8711
or
Ron Stabiner
Vice President
The Wall Street Group, Inc.
212-888-4848
