Prodeco Technologies Agrees to Acquisition by OTCQB Company

Prodeco Technologies LLC, a Florida e-bike manufacturer, has agreed to be acquired by the penny stock company PayMeOn Inc.

PayMeOn, which acquired a 19.4 percent stake in ProdecoTech in July, will issue approximately 53.4 million common shares in exchange for the remaining 80.6 percent of ProdecoTech that it doesnt already own.  PayMeOn may also assume certain of ProdecoTech’s outstanding debt, subject to mutually agreeable terms and conditions.  Finally, simultaneously with the closing of the transaction, all of PayMeOn’s currently outstanding convertible debt will be converted to approximately 5.3 million common shares. PayMeOn stock was trading at about 65 cents on the OTCQB market for development stage companies Thursday, up from 13.5 cents in mid-October. 

PayMeOn CEO Ed Cespedes has agreed to forgive all outstanding debt due him. The transaction is subject to mutually agreeable, final definitive documentation and other terms and conditions.

Upon closing of the transaction, ProdecoTech founder, Robert Provost, will be appointed co-CEO of PayMeOn and will remain CEO of ProdecoTech.  ProdecoTech co-founders, Daniel Del Aguila and James Aversa will also retain their leadership positions.

“We couldnt be more excited about this acquisition,” said Vincent L. Celentano, PayMeOn’s largest shareholder.  “We believe the quality of ProdecoTech’s “Built in the USA” e-bikes are unmatched in the industry.  In addition, ProdecoTech is led by a top-notch management team which we are pleased will continue to lead the company into the future.”

ProdecoTech had sales of more than $5 million in 2013, according to Cespedes.

“We expect healthy growth for 2014 and an exciting 2015 as ProdecoTech begins selling its newest models,” said Cespedes. “ProdecoTech’s dealer network in the United States has grown rapidly to approximately 180 locations.  ProdecoTech products can also be found at Amazon.com, sportsauthority.com, West Marine, and ATG (Lowe’s).  ProdecoTech’s international presence is also growing rapidly with current outlets in Chile, Argentina, Mexico, Colombia and Austria.”

Provost said ProdecoTech is excited. 

“We believe this transaction will bring even more awareness to our brand and be great for the electric bicycle industry and our shareholders,” Provost said.

Subject to certain voting arrangements and upon closing of the transaction, PayMeOn will expand its board of directors and appoint the following new directors:  Robert Provost, Vincent L. Celentano, Jack Tavone, and Sam Jazayri.  Our CEO, Mr. Cespedes, will also remain a director.

Closing of the transaction is subject to numerous risks, various conditions to closing and to final, definitive documentation.