updated its shareholders and potential investors on the status of previously announced letters of intent to acquire three U.S. based VoIP and telecom service providers.
On March 3, 2011 Flint announced a completed letter of intent to acquire a regional VoIP service provider with annual revenues in excess of $2 million currently growing at 50% per year with positive net income. On April 4, 2011 Flint announced a completed letter of intent to acquire a second service provider recording annual revenues of approximately $1.5 million per year and also generating positive net income. At the time of the announcements it was anticipated that these transactions would close within 60 days. This has not yet occurred due to Flint management's focus on successfully completing its Registration Statement on Form S-1 with the U.S. Securities & Exchange Commission (the "SEC"), which went effective on June 10, 2011. On June 13, 2011, Flint announced an additional letter of intent to acquire the assets of a third telecom service provider with current annual revenues of $3 million and 10% net income. All of the above providers have existing customers, sustained revenue streams and positive net income from delivering next generation VoIP and data services to small and medium sized enterprises within the United States. With its first Form S-1 registration process now completed, management will refocus on completing these acquisitions as soon as possible and continue to expand the pipeline of additional acquisitions planned for 2011.
All three pending acquisitions continue to be contingent upon the successful completion of Flint's due diligence process, which it expects to finish within the next thirty days. When closed, the three acquisitions are expected to be immediately revenue and margin enhancing to Flint with combined annual revenues in excess of $6.5 million per year and net income of approximately 10% all of which that are growing year-on-year. Once fully consolidated, Flint management expects that the operating costs will be further reduced due to shared common services and network cost reductions that will deliver higher net incomes than are generated individually. The consideration for these acquisition are structured with some cash being paid at closing, combined with deferred cash payments with stock and performance related earn-out elements to make the acquisitions as cash neutral to Flint as possible overall. Details of each transaction will be announced as definitive agreements are executed.