Brookside Completes Reverse Merger and Raises $1.5 Million
TAMPA FL, Feb 28, 2007- Cruisestock, Inc. (“Cruisestock” or the “Company”) (OTCBB: CSSK) and Brookside Technology Partners, Inc. (“Brookside”) announced today that they have closed a series of transactions as a result of which Cruisestock has acquired Brookside, Brookside has become a wholly-owned subsidiary of Cruisestock and the former shareholders of Brookside have acquired 7 million of the total 11 million shares of Cruisestock common stock outstanding as of the closing of the transactions.
Upon completion of those transactions, Michael Nole was elected to serve as Chief Executive Officer and was named as a director of Cruisestock. Mr. Nole has extensive industry experience in the industry, having been both a private consultant and holding various executive management positions with Executone Information Systems, Inc., which later became Executone Business Solutions, Claricom, and Staples Communications, which was, in turn, acquired by NextiraOne, LLC.
Also in conjunction with the transaction, Cruisestock has concluded a private placement with accredited investors in the amount of approximately $1.5 million. The Company issued Series A Convertible Preferred Stock, Series A Warrants, and Series B Warrants to the investors. Midtown Partners & Co., LLC (“Midtown Partners”) acted as the sole placement agent in this transaction.
Details of both the above transactions can be found on the Company’s simultaneously filed SEC Form 8k.
Michael Nole, Chief Executive Officer of Cruisestock, stated "We are excited the initial transaction is completed and believe being public should allow us to execute our business model as a consolidator of small to medium size convergent technology companies.” Nole went on to say, “With my 18 year telephony background, five as an independent consultant to many smaller companies in this specific niche, it is our goal to grow the Company both organically and through additional accretive acquisitions. Although there can be no assurances, we hope to close four to six acquisitions over the next 24 months.”
Cruisestock Management feels the time is ripe for consolidation in turnkey converged voice and data solutions industry because, among other things:
Enterprise spending on IP phone systems is expected to reach $4.2bb in 2007;
The value of the hosted solutions market is predicted to grow at a compounded annual growth rate of 137% over the next six years;
90% of the enterprises with multiple locations is expected to start switching to IP systems for voice over the next five years; and
IP Telophony equipment by 2007 is expected to account for 97% of all business telephony sales.
Michael Dance, President of Brookside, said. “Five years ago, my partners and I started Brookside with a $5,000 investment having identified the opportunity to provide business to business VoIP convergence solutions and to fill the void left by the consolidation of Major Telecom Companies now only chasing the major blue chip corporate accounts and abandoning the small to medium size business (under 500 desktops). Today, with the additional leadership and experience of Mike Nole together with the support of Investment Banking Firms like Midtown Partners, as a major shareholder of Cruisestock, I see a very bright future from both a business and long term equity participation view."
About Cruisestock, Inc.
Cruisestock, Inc., whose name will be changed shortly to more properly reflect its new business model, is a holding company whose goal is to consolidate through mergers, acquisitions and asset purchases of like companies looking to capitalize on the highly specialized market of providing turnkey converged voice and data solutions for companies of all sizes and types.
About Brookside Technology Partners
Brookside, headquartered in Austin, Texas, is a provider and global managed service company specializing in selling, designing, analyzing and implementing converged Voice over IP (VoIP), data and wireless business communications systems and solutions for commercial and state/government organizations of all types and sizes in the United States. Brookside is a leading VoIP reseller and professional services vendor with over 300 BCM installations that have various forms of networked or VoIP functionality. More information on Brookside can be found at the Brookside website at www.brooksideus.com.
About Midtown Partners & Co., LLC
Originally founded in May 2000, Midtown Partners & Co., LLC is an investment bank focused on private placement investment banking opportunities. The investment banking group at Midtown Partners & Co., LLC was founded on the premise that client relationships and industry focus are keys to the success of emerging growth companies. Such companies require investment banking services from a firm with a unique understanding of the marketplace and the nature of these transactions. Additional information can be found at http://www.midtownpartners.com.
Forward-Looking-Statement:
Except for factual statements made herein, the information contained in this press release consists of forward-looking statements that involve risks and uncertainties, including the effect of changing economic conditions, customer acceptance of products and other risks and uncertainties, including those risk set forth in Cruisestock’s Form 8-K filed on February 27, 2007 with the SEC. Such forward-looking statements are not guarantees of performance, and Cruisestock and Brookside results could differ materially from those contained in such statements. These forward-looking statements speak only as of the date of this release, and Cruisestock and Brookside undertake no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release.
Contact:
Michael Nole, CEO, Cruisestock, Inc.
813-342-0337
Or
Bryan McGuire, CFO, Cruisestock, Inc.
813-865-6333