Alanco Technologies, Inc. (NASDAQ:ALAN) – More Than Doubles On Acquisition News

ALAN - Google Finance" href="http://www.google.com/finance?q=NASDAQ:ALAN">Alanco Technologies, Inc. ALAN more than doubled in value yesterday, after the company reported the acquisition of YuuZoo Corporation in an all share deal. The deal is subject to due diligence, regulatory compliance, shareholder approval from both corporations, and NASDAQ approval.

Yuuzoo Corporation is a rapidly expanding mobile media company and is already profitable. The company has several high profile individuals forming the management team. The company reported unaudited sales of $17m and a net income of $1m for the 2010 fiscal year, ending on December 31. Sales for the 2011 fiscal year are forecast to exceed $30m.

The company plans to expand into the mobile markets of developing nations – where the uptake of mobile services is growing at a rapid rate. The press release included the following commentary:

Alanco Chairman & CEO, Robert R. Kauffman, commented, “This merger represents a unique opportunity for Alanco's approximately 2,700 shareholders to participate in one of the fastest-growing market opportunities of our lifetime – the mobile internet. Our merger partner, YuuZoo Corporation, is a global pioneer in this new market with a world-class management team, and a brief, but convincing, track record of strong growth and profitability.”

Thomas Zilliacus, Executive Chairman & CEO of YuuZoo, added, “We are truly excited with this opportunity to showcase our unique business plan and proprietary technology to U.S. investors and a broader global business audience that will be available to us through a NASDAQ listing. YuuZoo management and board are fully committed to maximizing our long-term shareholder value, and we believe that YuuZoo will perform quite well in the U.S. public market.”

Alanco Technoologies, Inc. is currently in breach of NASDAQ listing rules and is facing removal from the board. Alanco has requested a hearing seeking continued listing, pending the successful merger, which is scheduled to occur today.

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