COGNIGEN NETWORKS BUYS BACK 25% OF IT SHARES!
Cognigen Networks Buys Back 25% of Its Shares
Agent Force Grows Well Ahead of Plan to 151,000 +
SEATTLE, Nov 28, 2001 /PRNewswire via COMTEX/ -- Cognigen Networks. Inc. (OTC Bulletin Board: CGNW chart, msgs), a dominant Internet-enabled marketer of telecommunications services and long distance carrier with a worldwide presence, today announced the completion of two major milestones representing added shareholder value and astounding growth of its sales organization.
On October 3, 2001 Cognigen's board of directors announced the signing of a letter of intent to repurchase 21.7 million pre-reverse stock-split shares of the company's common stock owned by the Anderson Family Trust. Those shares amount to slightly over 25% of its issued and outstanding stock. An agreement redeeming 2,712,500 post-split shares has been completed. The total outstanding and issued shares of Cognigen Networks Inc. has been reduced to 8,204,457. The transaction requires no cash repurchase payment, no secured or unsecured debt commitment, and only a contingent obligation to pay future earned direct and override commissions.
Darrell H. Hughes, Cognigen's chairman and CEO, commented on the impact of the stock redemption, "We are delighted to have concluded this important agreement that should provide significant equity enhancement for our shareholders and the structuring of our value proposition for future Cognigen investors. This 25% reduction of our shares coupled with the voluntary cancellation of 75% of our options, which was announced October 3, 2001, have resulted in a concise and workable capital architecture for the company. Cognigen can now pursue its business expansion plans and seek new investment with greater ease and facility."
Mr. Hughes continued, "Cognigen has once more outperformed its earlier predicted target for agent acquisition. Growth of our agent force has exceeded our expectations. We previously announced a target for 150,000 agents by December 31, 2001. That target was surpassed five weeks ahead of schedule. This accomplishment was highlighted by a record sign-up period where in a single day last week 529 promising entrepreneurs decided to 'say yes', and begin selling Cognigen's services and products. With our current monthly agent sign-up rate exceeding 8,000, the company could reach its previously predicted target of 200,000 agents by June 30, 2001, at a significantly earlier date."
About Cognigen
Seattle-based Cognigen Networks, Inc. offers a wide range of telecommunications services and related products via its Web site, cognigen.com . Cognigen's robust marketing engine is fueled by distribution channels that harness a dominant Internet presence and a corps of over 151,000 independent agents and several affiliate groups, each with their own customized Web site. This provides Cognigen with both agent initiated sales that are then fulfilled via the Internet as well as those generated directly off its main Web site. Cognigen resells the services of industry leaders such as AT&T Wireless, Qwest, WorldCom, Sprint, Verizon, Global Crossing, and DISH Network. The company also operates a wholly owned subsidiary, Cognigen Switching Technologies (CST), based in San Luis Obispo, CA. CST is an FCC licensed international and interstate facilities-based carrier and reseller. Cognigen has sold, on behalf of its vendors and for its own account, services and products to approximately 600,000 customer accounts worldwide.
The information herein contains forward-looking statements, including, without limitation, statements relating to Cognigen Networks, Inc. and its wholly owned subsidiary, Cognigen Switching Technologies, Inc. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect the company's business, financial condition and results of operations, including without limitation, our possible inability to obtain additional financing, lack of agent growth, the possible loss of key personnel, rate changes, fee policy or application changes, technological changes and increased competition. Many of these risks are beyond the company's control. The company is not entitled to rely on the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, or Section 2lE of the Securities Exchange Act of 1934, as amended, when making forward-looking statements.
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Source: Cognigen Networks. Inc.
Contact:
Stuart T. Smith of SmallCapVoice.com, Inc., +1-619-276-1996, or
fax, +1-619-276-1966, or SSmith@SmallCapVoice.com, for Cognigen Networks,
Inc.
URL: cognigen.com
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