SAN DIEGO, Calif. -- Greenland Corporation (OTC Bulletin Board: GRLC) has completed its sale of controlling interest in Greenland to Imaging Technologies Corporation (OTC Bulletin Board: IMTO).
At the closing, Imaging Technologies (ITEC) issued a convertible note for $2.25 million in
exchange for approximately 19 million shares of Greenland common stock -- approximately 60 percent of the issued and outstanding shares at the closing date -- and for warrants that,
upon reaching certain triggers, will result in ITEC ownership of an additional
30 percent interest in Greenland.
According to a news release, Brian Bonar, chairman and chief executive of ITEC will become chairman of Greenland, while Tom Beener will continue to serve Greenland's chief executive.
The two companies hope to market Greenland's MAXcash ABM kiosk, which offers self-service check cashing and ATM cash withdrawals, through a Greenland subsidiary that provides professional employer services.
The wholly owned subsidiary, ExpertHR, will work with ITEC to provide services including benefits and payroll administration, health and workers' compensation insurance programs, personnel records management, employer liability management, employee recruiting and selection, performance management and training and development services.
ExpertHR will offer Greenland's MAXcash ABM kiosk to selected professional employer services clients -- particularly those such as manufacturing facilities that have a large number of employees, a number of whom may not have bank accounts.
"Greenland and ITEC have begun to build our professional employer services businesses with positive results," said Bonar in the release. "ExpertHR has entered into several client
contracts, which will be reflected in Greenland's March 31, 2003 quarter."
ITEC reported a net loss of $13.7 million, or $1.12 per share, its fiscal year ended June 30, 2002. In the prior year, shareholder losses were $1.51 per share.
Greenland reported a net loss of $3.4 million for the six months ended June 30, 2002. According to its quarterly report filed on Aug. 15: "Historically, the company has financed its operations through cash generated from the sale of equity securities and debt financing. To date, the company has not been able to support its operations from revenues through sales of products or services."
