HITT: Great News Out, the stock will return to 20$ soon !!!
any comments ?
uesday June 15, 03:58 PM Eastern time
Company Press Release
Hitsgalore.com Finalizes Agreement for $100
Million Investment From Life Foundation
Trust
RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--June 15, 1999--
Hitsgalore.com, Inc. (OTC BB:HITT) today announced that it has received and
accepted a Subscription Agreement from the Life Foundation Trust for an
equity investment of 100 million for five million shares, or 20 per share. The
Subscription Agreement formalizes an earlier Agreement in Principal between
the parties.
Under the terms of the Subscription Agreement the Trust will pay 100 million
cash to Hitsgalore.com within one year. The Subscription Receivable will be
secured by an assignment of certain assets held by the Life Foundation Trust.
The Subscription is a binding legal obligation of the Life Foundation Trust. The
stock to be received by the Trust following shareholder approval will be
restricted, and held by the Trust pursuant to a lock-up agreement.
Steve Bradford, CEO of Hitsgalore.com, said, "We are pleased with the
continuing vote of confidence from the Trust, and we believe that this
transaction will be beneficial to the long-term financial well-being of the
Company. Amidst the turmoil compounded by negative rumors and innuendo,
the Company remains profitable and the response to our radio ads has been
very good. We are focused on the future, with new products and offerings
under development to further enhance our business model."
Hitsgalore.com is in the midst of a national radio ad campaign that is driving
traffic to its website at hitsgalore.com. The Company projects
positive cash flow from its unique business model of giving away free lifetime
banner placements, and generates sales from its sponsorships, Keyword Bid &
Rank program and Local City Editions. The company believes this compares
favorably with other Internet portals and search engine companies such as
Lycos, Inc. (Nasdaq:LCOS), Excite, Inc. (Nasdaq:ATHM), Infoseek
Corporation (Nasdaq:SEEK) and Yahoo Inc. (Nasdaq:YHOO).
Hitsgalore.com strives to provide porn-free searching and does not accept or
encourage any porn or adult-content listings on its site.
Included in this release are "forward-looking" statements within the meaning of
Section 27A of the Securities Act of 1933, Section 21E of the Securities
Exchange Act of 1934, as amended, and as that term is defined in the Private
Securities Litigation Reform Act of 1995. Although the company believes that
the expectations reflected in such forward-looking statements are reasonable, it
can give no assurance that such expectations reflected in such forward-looking
statements will prove to have been correct. The company's actual results could
differ materially from those anticipated in the forward-looking statements as a
result of certain factors including sales levels, distribution and competition trends
and other market factors.
Contact:
Hitsgalore.com, Inc., Rancho Cucamonga
Danny Gavin, Investor Relations: 800/300-5388
or
investor@hitsgalore.com
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