DUBLIN, Ireland, Nov. 27, 2007 (PRIME NEWSWIRE) -- FreeStar Technology Corporation (OTCBB:FSRT) (the "Company"), an international card payments processor and technology company, has received certain indications of interest from third parties regarding potential acquisitions, including receipt of at least one non-binding letter of intent proposal. The Company has engaged in talks with certain parties regarding transactions that could include a sale of substantially all of the Company's assets or the assets of its subsidiary, Rahaxi Processing Oy, or a partial sale of its assets. The Company has also had discussions regarding a potential funding transaction by selling off a significant equity stake in Rahaxi, while substantially maintaining control of the Company's business and operations.
Management is continuing discussions with the current interested parties and is in the process of determining if there are other potential acquirers or equity partners that might submit proposals. Management intends to present any binding, written proposals to the Board of Directors of the Company for review and consideration. If the Board determines to move forward with any acquisition proposal, it anticipates presenting the definitive terms of any such proposed transaction to the shareholders of the Company for approval to the extent required by applicable law. Discussions remain in the early stages and the Board of Directors has not made any decision regarding whether or not to recommend selling the Company or its assets, and it may direct management to cease discussions at any time, in its discretion. The Board will take into account all aspects of any proposals, including the total consideration and the form of such consideration, such as cash or stock, as well as other structural elements and the financial strength and business plan of any potential acquirer.
About FreeStar Technology Corporation
FreeStar Technology Corp. provides mission-critical solutions to the financial industry worldwide. Working with merchants and acquirers in more than twenty countries, its product suite has empowered partners to focus on their core competencies, while its innovative driven approach has enabled them to benefit from first to market advantage and realize their true potential. FreeStar Technology has adopted a partnership strategy for growth. Its partners are market leaders in their respective industries. These include IKEA, Finnair and Stockmann. Its subsidiaries, Rahaxi Processing Oy, Finland, FreeStar Technologies Ireland, Ltd., and FreeStar Dominicana S.A. Dominican Republic, continue to develop and implement first class products and solutions that enhance the service level its partners can offer their customers. For more information, please visit www.freestartech.com and www.rahaxi.com
Forward-looking statements
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. When used in this press release, the words "expects," "anticipates," "believes," "plans," "will" and similar expressions are intended to identify forward-looking statements. These are statements that relate to future periods and include, but are not limited to, statements regarding our adequacy of cash, expectations regarding net losses and cash flow, statements regarding our growth, our need for future financing, our dependence on personnel, and our operating expenses. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the companies, are forward-looking statements that involve risks and uncertainties. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, those discussed above as well as risks set forth above under "Factors That May Affect Our Results." These forward-looking statements speak only as of the date hereof. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above. The companies caution that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in FreeStar's Form 10-KSB filing and other filings with the U.S. Securities and Exchange Commission (available at www.sec.gov). FreeStar undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events, or otherwise.