Direction Technologies Inc. (OTC Bulletin Board: DRCG.OB) announced it has acquired 100 percent of Empyrean Communications Inc. ("Empyrean") in exchange for 15,000,000 restricted shares of DRCG.
Empyrean is an international broadband provider capable of delivering fiber capacity to OC-192 levels. Empyrean's mission is to "light up" the 29,000 miles of fiber-optical digital broadband it currently has under contract. This would allow Empyrean's future clients to purchase, rent, lease or joint venture with others smaller configurations of bandwidth such as OC-12, OC-3 and DS-3.
Empyrean's ability to deliver large bandwidth volume, coupled with its strategic alliances, allows Empyrean the ability to develop and provide infrastructures throughout North America. Empyrean has available advanced Optical Switching Capabilities, currently in a testing environment, which will enhance network interfacing with private lines, private networks, coaxial cable, optical fiber, wireless network and DSL circuits, resulting in seamless service to its customers.
Empyrean's long-term global purchasing agreement for bandwidth and servicing provisions, encompassing all levels of bandwidth delivery from the smallest level to OC-192 capacity, allows Empyrean the means of delivering broadband at competitive values. Empyrean's contacts in the international financial market will be available to it's clients to help offset long term communication costs and allow them to maximize the return on their asset base.
Empyrean currently has five OC-48 Bandwidth dark fiber circuits under contract in ten U.S. cities for ten years. Market value of this bandwidth is estimated to be approximately $500,000,000, and third party valuation of this commodity is currently being completed. Empyrean has the potential of increasing its bandwidth ownership to a level of at least five times its current capacity, increasing the company's opportunity to maximize future revenue streams from the sale of incremental bandwidth.
Empyrean and its strategic partners have available fiber in New York, Boston, Washington D.C., Miami, Atlanta, Chicago, and Dallas, with Los Angeles expected to be lit up in March 2001. By year-end, Empyrean expects to extend its capacity internationally.
With DRCG's acquisition of Empyrean, Rolf Papsdorf and Dieter Schindelhauer have resigned as officers and directors of DRCG. The asset of DRCG, the Qiblah Locator, has been returned to the corporation from which it was purchased, Qiblah International Industries Ltd. In addition, DRCG has chosen not to exercise an option to enter into a worldwide license agreement with E.T.C. Industries Ltd. of Vancouver, British Columbia to license certain technology.
Dale A. Renaud, a retired banker; Robert L. Lee, a financial consultant; and George Burks, an attorney, have been named as new DRCG directors. Mr. Renaud will serve as President and CEO, and George Burks will become Secretary. Present DRCG director Ken Liebscher will remain on the board.
The new board anticipates a name change to Empyrean Communications, Inc. after obtaining required approvals.