Trustcash in Talks to Acquire and Merge with Paivis

NEW YORK - Anonymous-payment system Trustcash Holdings Inc. has signed a Term Sheet outlining the terms of acquisition and merger with wholesale telecommunications carrier Paivis Corp.

Trustcash would have the right to acquire all of the issued and outstanding common and preferred shares of Paivis on a share-for-share basis. Completion of the acquisition is subject to legal and financial due diligence and acceptance of a mutually acceptable financing of no less than $6,000,000, among other things.

"We at Trustcash realize that together, Trustcash and Paivis could become a powerful prepaid organization. As a result we are making an aggressive offer to the Paivis shareholders. We feel confident this merger transaction will close and will benefit both our shareholder groups, said Trustcash CEO Greg Moss.

"A Trustcash-and-Paivis merger, along with [Detroit Phone Cards Inc.] and [AAAA 4 Media Services Ltd.], will create a company with a combined revenue stream of over $73 million with economies of scale and a management team that will be a force to be reckoned [with]," Moss said. "Although a fast-moving and mammoth endeavor, I am confident in our aggressiveness and the merger becoming a success.''

Paivis recently inked agreements to acquire Detroit Phone Cards and AAAA 4 Media Services, laying the foundation for the company to expand its prepaid-calling-card business and introduce related business lines.