MindArrow Purchase Adds to Cash Reserves

MindArrow Systems Inc., recovering from a counterfeit-stock debacle early this year, said Monday that it has completed its purchase of a New York company in a deal that boosts the Aliso Viejo company's cash reserves to $4 million.

MindArrow, an online marketer, said its acquisition of privately held Control Commerce Inc. gives it advanced electronic commerce and customer acquisition technology, as well as Control Data's $1 million in cash.

Terms of the deal were not disclosed.

Trading in MindArrow shares was halted on Nasdaq for three months after the company disclosed in February that its former stock transfer agent had issued 1.1 million shares of bogus stock. Company founders gave up an equal amount of their shares to cover the fraud.

Federal prosecutors said last week they have reached plea agreements with two suspects in the fraud.

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