Riverside Group Acquires Greenleaf Technologies in Strategic Online Entertainment Alliance

Strategic Insights -

Riverside Group, a leading technology company, has finalized an agreement with Greenleaf Technologies Corporation to acquire 100% of the common stock of its subsidiary GameVerse, Inc. in exchange for common shares of Greenleaf Technologies. As a result of the transaction, Riverside now owns approximately 40% of Greenleaf's outstanding common shares. The partnership aims to leverage the strengths of both companies to create a leading online interactive network, providing content, developing games, selling advertising, and offering cross-marketing opportunities through the GameVerse online virtual mall and software game sites.

Key Takeaways:

  • Riverside Group, Inc. has acquired Greenleaf Technologies Corporation through the exchange of common shares of GameVerse, Inc., its wholly owned subsidiary, for 100% of Greenleaf's common stock.
  • The resulting business combination is expected to generate significant revenues for the 1998-1999 fiscal year, commencing October 1, 1998.
  • The partnership will create a comprehensive online interactive network, enabling the companies to provide content, develop games, sell advertising, and offer cross-marketing opportunities.
  • Initial sales and marketing efforts will focus on promoting products such as clothing, published or print products, TV shows, Internet services, and games.
  • The acquisition positions Greenleaf Technologies to capitalize on the extraordinary opportunities arising from the convergence of e-commerce, entertainment, and the Internet.
  • Greenleaf plans to raise up to $10 million in additional capital to facilitate its new business plan, which includes expanding its Internet presence through partnerships with UltiFox, USA and Western International Syndication.
  • Riverside Group is the parent company of Cybermax, Inc., Home Building Resources, Inc., and Wickes, Inc., one of the nation's largest building materials suppliers.

Statistics:

  • 40%: Riverside Group's ownership stake in Greenleaf Technologies Corporation.
  • $1 million: Estimated additional capital to be raised by Greenleaf Technologies.
  • 1998-1999: Fiscal year during which the partnership aims to generate significant revenues.
  • 50%: Riverside Group's ownership stake in Wickes, Inc., one of the nation's largest building materials suppliers.
  • 100%: Percentage of GameVerse, Inc.'s common stock acquired by Riverside Group in exchange for 100% of Greenleaf's common stock.

Sources:

  • "Riverside Group, Inc.'s (Nasdaq: RSGIC) announced today that the Company has finalized an agreement with Greenleaf Technologies Corporation (OTC Bulletin Board: GLFC)".
  • "According to Greenleaf's management expectations, the resulting business combination should generate significant revenues for the 1998-1999 fiscal year that began October 1, 1998".
  • "J. Steven Wilson, Chairman, President and CEO of Riverside Group, Inc., stated, 'Greenleaf and GameVerse have made substantial financial commitments in pursuing business opportunities in the entertainment industry with Internet technology.'"