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TBSS International (TBSS) to Purchase Velella International Lighting’s Corporate Assets

International mining, drilling, trenching and construction company, TBSS International, Inc., announced that it has changed its previously announced Letter of Intent to acquire Velella International Lighting, Inc. (“Velella”) to a purchase agreement for some of Velella’s corporate assets. The purchase is valued at $4 million. TBSS used debt financing; there was no stock dilution for the purchase.

Under the terms of the Asset Purchase Agreement, TBSS acquires “life of patent” rights to Velella’s energy-efficient neon lighting technology (patent # 6,471,369), three facilities and inventory. The three locations include a warehouse facility in Ft. Lauderdale, a warehouse and research and development facility in St. Thomas, Virgin Islands and a manufacturing and warehouse location in Shanghai, China that will be relocated to the United States. The Chinese facility includes an order backlog of $3.2 million.

TBSS’s CEO, Todd Spinelli, said, “After more due diligence, it was determined by our advisers that our plans to acquire Velella in its entirety should be restructured as an Asset Purchase Agreement of certain specified assets to include patents, a manufacturing facility, warehouses and inventory of parts and completed lighting units.”

Spinelli continued, “We are excited about adding this new technology to TBSS International’s IP portfolio. We feel with the right marketing this energy-efficient lighting could generate significant revenues for the company by helping public and private coastal property owners meet government mandates and the retrofitting of fluorescent lighting fixtures. We do not feel it overly optimistic to expect to see a number of large contracts in the very near future.”

John Velella, of Velella International, added, “We feel that our technology has found a good home and, with Mr.Spinelli’s prior experience in fluorescent ballast technology, it was a natural fit. I have worked on developing this energy-efficient technology for the past decade and I am happy to finally see the technology be combined with the experience and resources to introduce to the marketplace—both private and governmental markets.”

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