Amazing PR from IMON - CEO has to put out PR to squash internet rumors
now you have CEO's running around reading message boards... bad sign sheesh
Wednesday January 27, 4:51 pm Eastern Time
ImaginOn CEO quashes rumors, shares slide
NEW YORK, Jan 27 (Reuters) - Shares of ImaginOn Inc. slipped Wednesday, after the
San Carlos, Calif.-based Internet software company quashed rumors it was involved in ''a
possible transaction'' with online giant America Online Inc.
Shares of ImaginOn fell 27 percent to 8-9/16, off 3-1/8. The shares, which traded at around 2 a share two weeks ago, soared
to a 52-week high of 15-1/4 on Tuesday.
ImaginOn CEO David Schwartz told Reuters that the company is not in talks with AOL. Schwartz said he became aware of the
gossip on an Internet message board on Jan. 25 and quickly tried snuff it.
''The first time I saw the rumors was Monday,'' he said. ''I saw it (on an Internet board) and I immediately put up a posting,
with my own identity as CEO, saying that is was nonsense. (But) That message had no effect.''
After the stock rose to its all-time high on Tuesday, amid trading volume more than ten times its average, Nasdaq urged the
company to comment on its unusual trading activity, Schwartz said.
ImaginOn's press release late Tuesday reiterated the denial. It stated the company recently closed a merger with its
ImaginOn.com unit, and that it has released all relevant information to the market.
An America Online spokeswoman, asked about any possible ties with ImaginOn, said AOL does not comment on rumors.
ImaginOn at one time sold in-line skates and snowboards under the California Pro Sports name. Schwartz said the company
expects draw revenues from software sales and fees from companies who want to use its products on their computer systems,
Schwartz said.
''We think our big revenues will be on the business side from site licenses on the enterprise edition and the server version,'' he
said.
Asked to name its corporate clients and about any plans to license the software for use in products made by other companies,
Schwartz said he has no comment.
The company on Friday will release WebZinger 6.00, Internet research software that combines Web browsing, searching and
downloading functions. |
