Nannaco Inc. has executed a Letter of intent (LOI) to acquire Global Defense Corporation (GDC), located in Washington, D.C.
The LOI provides for the payment to the company of cash in stages. Initially GDC will pay $25,000 to the company. At the time a definitive merger agreement is signed, GDC will pay to the company another $125,000. Upon closing the merger GDC will provide an 8 percent $250,000 promissory note payable within 90 days of the closing of the merger. The obligation of GDC to close is conditioned on, among other things, the satisfactory completion of due diligence review by GDC and the reduction of the company's liabilities to $50,000 or less.
GDC is in the business of providing added value to existing companies with products and services relating to the homeland security industry. Technologies of interest include, but are not limited to: remote sensing technologies, security assessment and simulation software, surveillance technologies and others. GDC adds value by providing strong and proven management, a highly accomplished advisory board, and the ability to support new technology and business developments through new financing. Currently, GDC is in negotiations to acquire several acquisition targets consistent with its business objective of creating a large scale global security technology firm.
"We are pleased to have concluded this letter of intent with Nannaco," said Paul Silverman. "I anticipate prompt completion of this transaction, which provides a strong foundation enabling GDC to achieve its ambitious business objectives of global consolidation of critical homeland security technologies."
"We could not be more excited about our opportunity to combine with Global Defense Corp.," noted Steve Careaga, CEO of Nannaco. "Homeland Security is currently one of the fastest growing sectors in the United States. Combined government and private sector expenditures are expected to exceed $130 billion in the next five years. I look forward to completing this transaction so that Nannaco shareholders can participate in this exciting and fast growing marketplace."
In a prior press release and in filings with the SEC, the Company disclosed that it intended to merge with NAZZ Productions, Inc., a film production company controlled by Nick Stagliano. In order to fulfill its obligations to NAZZ and to the trading markets, the company intends to reorganize NAZZ into a subsidiary of the company and to perform the undertakings necessary to make NAZZ a stand-alone, publicly traded company. The company's plan includes exploring the possibility of doing a registered spin-out of NAZZ to existing Nannaco shareholders.