(BSNS WIRE) Hitsgalore.com Finalizes Agreement for $100 Million Investme
Hitsgalore.com Finalizes Agreement for $100 Million Investment From Life
Foundation Trust
Business Editors
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.
--30--jd/mi*
CONTACT: Hitsgalore.com, Inc., Rancho Cucamonga
Danny Gavin, Investor Relations: 800/300-5388
or investor@hitsgalore.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED
INTERACTIVE/MULTIMEDIA/INTERNET
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