In the news release, VocalTec and YMAX/magicJack Announce Merger, issued 16-Jul-2010 by VocalTec Communications Ltd. over PR Newswire, we are advised by the company that the first paragraph, fourth sentence, should read, "The parties believe that the combined company has an enterprise value of $245 million and a per share value of at least $17.50 on Monday, July 19th, 2010 on a stock split adjusted basis." rather than "The parties believe that the combined company has an enterprise value of $245 million and a per share value at least $17.50." In addition, third paragraph, first sentence should now end with "2008." instead of "2009." as originally issued inadvertently. The complete, corrected release follows:
VocalTec and YMAX/magicJack Announce Merger
Combined company has the use of over 30 patents or patents pending
YMAX/magicJack and VocalTec to advance lead on voice on everything SIP platform including free phone numbers, contacts on network, and free domestic local and long distance
NETANYA, Israel and WEST PALM BEACH, Fla., July 16 /PRNewswire-FirstCall/ -- VocalTec Communications Ltd. (Nasdaq: VOCL), the inventor of VOIP including the softphone, and YMAX Corp., the creator of magicJack and other products and services have successfully merged and will be traded on the Nasdaq under the symbol (NasdaqGM (Global Markets): CALL). VocalTec stock will seize to be trading using the symbol (NasdaqCM:VOCL) after close of business today July, 16th 2010. It will commence trading using the symbol (Nasdaq: CALL) on Monday, July 19th, 2010. The parties believe that the combined company has an enterprise value of $245 million and a per share value of at least $17.50 on Monday, July 19th, 2010 on a stock split adjusted basis. The previous holders of VocalTec will have 1,173,294 shares of common stock following the merger. VocalTec expects to have revenues ranging from $110 million to $125 million this year. With over $40 million cash/securities on hand and no debt, VocalTec expects to show a profit in the current quarter. For additional information on this announcement we recommend that investors read the entire press release and the VocalTec (Nasdaq: VOCL) press release describing the stock split and review the form 6-K filing with the Securities and Exchange Commission that we expect to be filed on or before Monday, July 19th, 2010, described below.
The combined companies have the use of over 30 patents, some dating to when VocalTec invented VOIP. In the current legal world we live in, this protection is crucial. The company believes that its patents, technology, and inventions are prior art to other existing patents and may also expose patent invalidity. The combination of patents and softphone/softswitch technology were the primary drivers of the merger. The combined company is much stronger now.