New Paradigm in New York City said it
has acquired certain assets, including all the client relationships, from
Schoen Kapelus & Cipriano Advertising of Harrison, NY.
The principals of the company (Milton Kapelus and Rocco Cipriano) are joining
the New Paradigm team to continue the development of client relationships.
The acquisition was made through a wholly-owned subsidiary of New Paradigm
to be known as SKC Advertising Inc.
The acquisition price is 250,000 shares of common stock of New Paradigm
Software Corp., plus a payout over the next three years related to the
revenue of SKC Advertising–to be paid half in New Paradigm common stock
and half in cash.
In addition the subsidiary assumed certain liabilities, including media-
related accounts payable and approximately $55,000 of debt. Paradigm, traded
over the counter, closed at $0.31.
“This acquisition is an important step forward for New Paradigm. We are
continuing to review other acquisition and merger opportunities in the
advertising area as we believe that our Internet capabilities will combine
powerfully with the resources of agencies to create a successful and
growing business,” said Mark Blundell, New Paradigm CEO.
“The established client relationships of agencies should increase the
opportunity for us to deliver profitable value-added technically advanced
services like Internet applications.”
New Paradigm creates Internet applications and Web sites; clients include
Novartis Animal Health USA, National Multiple Sclerosis Society, and the
Association of the Bar of the City of New York.