Xtranet Systems Inc. Monday announced that the shareholders of Xtranet and DataGate International(Nevis) have approved the previously announced acquisition of DataGate International by Xtranet.
The purchase price is comprised entirely of Xtranet common shares. DataBank International concurrently announced the establishment of DataBank(Bahamas) and DataBank(Barbados) in addition to the already established DataBanks in Nevada and Nevis, Wis. DataBank(Nevis) is the first DataBank to fully utilize the DataGate System and is currently processing credit card transactions through the Bank of Nevis.
Through its DataBank Network, DataGate is a provider of credit card processing services, electronic currency services, and stand alone financial processing systems, to offshore financial institutions and commercial merchants. DataGate is the originator of MasterCoin, the next generation of Internet electronic currency, utilizing a state-of-the-art token-based system. Further information in regard to DataGate systems and services will soon be posted on Xtranet’s Web site, located at [http://www.xtrasystems.com.] DataGate currently handles the credit card processing for the Bank of Nevis, which, when combined with credit card processing transactions in progress, projects to $250 million annually in credit card processing business.
Each DataBank maintains a local relationship with a local financial institution and local merchants. DataGate International maintains a minority interest in each DataBank, and receives fee income from the licensing of its DataGate system and application to each DataBank.
Xtranet is the creator, developer and producer of online Internet-based extranet systems and service applications. The company has focused on developing and marketing its turn-key sportsbook system to legal offshore gambling companies, and to developing and producing sports pool games. With the acquisition of DataGate, the company plans to primarily focus its attention on the implementation of Xtranet’s offshore financial processing capabilities.
The statements discussed in this news release include forward-looking statements that involve a number of risks and uncertainties. These include the company’s historical lack of profitability, issues associated with international transactions, the need to manage its growth, the need to raise funds for operations, and other risks associated with a development stage company.