XML Global Technologies, Inc. announced that it has signed a letter of intent to acquire all of the intellectual property of VertaPort Inc. The letter of intent also provides for up to a $5 million equity investment into XML Global by The Paradigm Group II, L.L.C., the controlling shareholder of VertaPort, subject to certain conditions. Under the proposed agreement, Paradigm would provide an immediate $2 million equity investment upon closing of the transaction, scheduled for no later than August 15th, 2002. The terms of the acquisition and funding agreement provide for XML Global to issue 7 million common shares in exchange for 100% of the intellectual property rights of VertaPort. Additionally, XML Global will issue 7 million common share warrants exercisable at $0.50 and a further 2.5 million common share warrants exercisable at $1.00 per share to complete the acquisition transaction. www.xmlglobal.com
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