J.L. Halsey Acquires Clicktracks and Hot Banana

Aug 25, 2006


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J.L. Halsey Corporation has announced that it has acquired web analytics provider ClickTracks Analytics, Inc., of Santa Cruz, Calif., and emarketing web content management company Hot Banana Software Inc., of Ontario, Canada. To finance these acquisitions, the Company closed a $10 million subordinated bridge loan.

At the closing of the ClickTracks acquisition, Halsey paid the security holders of ClickTracks approximately $7.6 million in cash, issued to the security holders of ClickTracks who are "accredited investors" approximately $2.9 million worth of Halsey common stock (valued at a 30-day trailing average of Halsey's closing sale prices), agreed to pay to the security holders of ClickTracks who are not "accredited investors" a total of approximately $100,000 in cash, and agreed, in the event that certain milestones are reached over the next two years, to pay the owners of ClickTracks an additional $3,300,000 in earn-out payments. An additional $510,000 will be paid subject to working capital adjustments.

At the closing of the Hot Banana acquisition, Halsey paid the owners of Hot Banana approximately 1.9 million Canadian dollars (˜$1.7 million) in cash and will make installments totaling up to approximately 750,000 Canadian dollars (˜$672,000) if Hot Banana achieves specified revenue and technology integration targets in the first and second year following the closing. An additional 500,000 Canadian dollars (˜$448,000) will be paid subject to working capital and other adjustments.

(www.jlhalsey.com; www.clicktracks.com; www.hotbanana.com)