Bad or Good for KANA ???
Kanakaris In Discussions To Raise Additional Capital, Announces Key Infrastructure Additions and Strategic Internet Business Plan
NEWPORT BEACH, Calif., Jun 21, 1999 (BUSINESS WIRE via COMTEX) --
-Internet, Computer, Advertising, Movie and Finance Pros Added to
Kanakaris Management Team-
Kanakaris Communications, Inc. (OTC BB: KANA), an emerging-growth Internet company, issued a progress report today, which includes the announcement of several key additions to its Board and Management Team, as well as an overview of its Strategic Business Plan.
The Company also announced that it has received indications of interest from brokerage firms and investors for participation in a planned round of financing.
Kanakaris announced its plans for further capitalization:
Following recent appearances by CEO Alex Kanakaris at the 48th Annual Equities Magazine Conference in New York and the Regional Investment Bankers Association meeting in Orlando, Florida, the Company has received numerous verbal and written proposals related to capitalization from brokerage firms with successful public offering track records and interested investors. The Company's counsel is currently reviewing these proposals with the intent of signing a letter of intent within thirty days for potential new capitalization. Following the due diligence process, the Company will issue a progress report on its financial undertakings.
The Company recently was published by Standard & Poor's and received blue-sky acceptance by most states. Concurrently, the Company is reviewing listing criteria for several stock exchanges and has met with executives of the Philadelphia and Pacific exchanges. The Company's long-term goal is to be NASDAQ Small Cap or NASDAQ National market listed, although there can be no assurance the Company will qualify for additional exchange listings.
Kanakaris announced promotions and additions to its Corporate Infrastructure:
-- Alex Kanakaris, CEO and Chairman of the Board Alex Kanakaris creates the business vision of Kanakaris Communications, Inc. and leads all aspects of its development, including strategic alliances and invention of proprietary Internet business concepts and technologies. Mr. Kanakaris is an Internet pioneer who has been interviewed about his vision for the Internet on television, radio and on the World Wide Web. Mr. Kanakaris was editor-in-chief of such publications as Video Swapper, Video Entertainment, New Talent Streetscene and L.A.POP. He was involved in marketing for a large consumer electronics company and the world's largest costume jewelry company. He became a stockbroker for Dean Witter to enhance his business knowledge in preparation for leading a public company. Mr. Kanakaris created innovative web sites including www.cyberpop.com and www.NetBooks.com, and has been an early user of streaming audio and video technology. Among his other achievements at Kanakaris Communications have been the delivery of thefirst full-length motion picture over the Internet with no download time, in December 1995 (in conjunction with XING Technology) and the acquisition of the Desience Corporation. Mr. Kanakaris is the host of World Web Watch, a program focusing on Internet issues, and has interviewed such executives as Dick Brass, Vice President, Technology, Microsoft Corporation.
-- Branch Lotspeich, Director and Vice Chairman of the Board Branch Lotspeich is the President of the Kanakaris Desience division, designers and providers of command and control environments for Internet and intranet applications. Mr. Lotspeich directs the Kanakaris Desience relationship with such clients as NASA, where Mr. Lotspeich has overseen the design and implementation of Desience's OPCON Module System for the Goddard Space Flight center. Branch has worked directly with AT&T, IBM, IRS, Ford Motor Co. and other clients to develop data and networking centers. Mr. Lotspeich is the top advisor to the CEO on major Internet technology issues and is involved is all aspects of the Corporation's managerial development. Mr. Lotspeich worked as an independent consultant in telecommunications acquiring accounts including Proctor & Gamble and Cincinnati Bell Telephone. His worked encompassed site design, broad band communications, world-wide group project communications, as well as telephony. For 10 years Mr. Lotspeich was the manager of the Medical Media Center at the University of Cincinnati. He designed and oversaw the building of the first Medical Media Center in Hangchou, China. He served as television and media consultant to the Children's Hospital in Krakow, Poland. Branch has an expertise in computer programming, including Internet applications of HTML, CGI and Java. For 6 years (1980-1986), he served as an appointment of the mayor of Cincinnati to the Citizens Cable Regulatory Board. Mr. Lotspeich is a Summa Cum Laude graduate of the University of Cincinnati, Bachelor of Fine Arts in Television Broadcasting.
-- Jeff Hall, Director and Associate to the CEO Jeff Hall is a highly respected Publisher, Business Owner and Southern California community leader. He serves part-time as both a statistician and a hands-on business implementer for Kanakaris Communications as an Associate to the Chief Executive Officer. Mr. Hall is the leading publisher of community newspapers in some of the most affluent portions of Southern California and his papers have included the Brentwood News, Westwood News, Century City Chronicle, Santa Monica News and Beverly Hills Chronicle. Mr. Hall joined the Los Angeles Times as Vice President, Marketing Services. He was promoted to become the first President of the Los Angeles Times San Fernando Valley edition. He also launched, in the capacity of President, the L.A. Times Ventura County edition. Jeff was one of twelve individuals honored to be selected from 855 applicants nationwide to serve one year as a White House fellow. Mr. Hall started his professional newspaper career as a general assignment reporter for the Kansas City Star, A Capital Cities/ABC newspaper. Mr. Hall served in many capacities at that newspaper, rising at age 30 to Vice President, Marketing. Mr. Hall has an M.B.A. from Harvard Business School and is a graduate of Stanford University with a B.A. in Communications
-- John McKay, Director and Webmaster John McKay has been a Webmaster since 1995 and has worked both full-time and as a consultant to CEO Alex Kanakaris since 1994. Mr. McKay has a background in Advertising, Marketing, and Graphics. He was advertising manager for Kelly-Moore paint Co. He was Sales Promotion Manager for ORA Electronics/Alliance Corporation, an international consumer electronics company. He has extensive experience in developing marketing programs, product literature, advertising campaigns, corporate identity programs and creating an online presence for corporations. He is a graduate of San Francisco State with a Bachelor of Science in Marketing. Mr. McKay will not only oversee the design of Kanakaris web sites, he will manage the sites on a daily basis.
-- David Shomaker, Acting Chief Financial Officer Mr. Shomaker is an audit partner of Haynie & Company, Certified Public Accountants based in Orange County, California and Salt Lake City, Utah. His management consulting services include forecasts and projections, as well as business valuations. He is a specialist in financial statement reporting, including audit, review and compilation services, as well as agreed-upon procedures reports. His areas of emphasis include management, manufacturing, and finance. Mr. Shomaker is qualified to perform peer review and quality review services on behalf of both the American Institute of Certified Public Accountants and the California Society of CPAs as a team captain. He has been Certified by the Association of Certified Fraud Examiners and the National Association of Certified Valuation Analysts as an Examiner and Analysts in their respective fields. He is a member of: American Institute of Certified Public Accountants, California Society of Certified Public Accountants, Utah Association of Certified Public Accountants, Construction Financial Management Association and other organizations. Mr. Shomaker is a Graduate in Accounting, Brigham Young University, Prove, Utah.
-- Renae Ross, Internet Strategic Advisor to the CEO Renae Ross has worked for the Microsoft Corporation, and Earthlink. She is an Internet expert and will co-host with CEO Alex Kanakaris a series of online interviews with leaders from the world of the Internet. Ms. Ross will also introduce Kanakaris to potential working relationships with Internet related companies as a main focus of her work.
-- Lisa Lawrence, Manager of Internet Business
Affairs/Administrative Manager for the CEO
Lisa Lawrence exits CURB Entertainment to join Kanakaris Communications with responsibility for successful follow-though on new Internet business and as the administrative manager for the CEO.
Additional Management Advisors:
-- Dr. Steven Newman, Director and Business Strategic Advisor to the
CEO
Dr. Newman is the Vice Chairman of the Xybernaut Corporation and has been directly involved in the development and international marketing of wearable computers. Dr. Newman advises the CEO on both world business relationship opportunities and business concepts.
-- Jill Thomas, Director Ms. Thomes is the President of ION Systems, Inc. and is the developer of proprietary technology for the Kanakaris web sites. Ms. Thomas is in integral part of Kanakaris business presentations to the financial community, including the upcoming Regional Investment Bankers Association meeting in Chicago in August. The Kanakaris relationship with ION Systems is also being expanded whereby ION Systems will assist in the technical functionality of allKanakaris web sites.
-- Rose Forbes, Director Ms. Forbes background includes work at Sony Pictures Entertainment, MCEG/Virgin Home Entertainment and Paramount Pictures.
-- Beryl Wolk, Advisor Mr. Wolk is an entrepreneur who has produced over 1,100 informercials and whose business network is presently comprised of family-founded and owned businesses which employ 1250 employees, and major facilities in four states.
-- George Atkinson, Movie Web Site Manager Mr. Atkinson is the founding father of home video and was the President of the 600+ Video Station network which preceded such stores as Blockbuster. He was Video Retailer of the Year, Video Man of the Year, and was a central character in the New York Times best selling book Fast Forward: Hollywood, the Japanese and the VCR Wars by James Lardner. Mr. Atkinson is both editorial and product director for the upcoming Kanakaris downloadable motion picture web site GoGoliath.Com
Kanakaris Communications announced this Business Overview:
-- Mission Statement Kanakaris is positioned to become "The Internet World Downloadable Leader." The Company is focused on four key areas of delivery of eCommerce content, and has unique technology combinations available for each. Kanakaris intends to be the first company to allow a single digital content source -- a book, a movie, or music -- to be replicated online as little or as many times as needed to fulfill orders.
-- Online Books NetBooks.com is already established as the leading web site offering direct Internet delivery of copyrighted material. Vinton Cerf, founder of the Internet and senior vice president for data architecture, engineering division, MCI WorldCom, has referred to the type of electronic secure delivery offered by Kanakaris as "the new economics of electronic publishing." Kanakaris has hundreds of books online and anticipates having thousands of books online this year. Whereas other web sites have more books for sale, Kanakaris is attempting to have the largest number of copyrighted books available for direct over-the-Internet delivery. Kanakaris anticipates the marketplace for electronic delivery of copyrighted books, whichit considers itself both an innovator and early stage participant in, to grow to a several hundred million dollar a year business area in the next fiveyears.
-- Online Music Cyberpop.com will be the downloadable music site offering a combination of 24-hour Internet radio exposure to artists combined with direct online sale of songs and albums in a choice of the leading Internet delivery technologies. Kanakaris has delayed launch of the site until approximately December 15 to take advantage of a proprietary EYE-ON-KANA (TM) Site Specific Browser (TM) being developed for Kanakaris by ION Systems, Inc. from a concept by Jill Thomas and Alex Kanakaris.
-- Online Movies GoGoliath.com is the tentative name of a downloadable movie Web site featuring proprietary technology with a security feature developed for Kanakaris by GEO Interactive. Prior to the premiere of the new downloadable technology, Kanakaris will show a full-length motion picture for free on the fourth of July utilizing GEO's audio-video streaming with no plug-in required. Kanakaris will sell home videos of the movie which it previews over the Internet.
-- Online Shopping/Entertainment ILSN.com, the Internet LifeStyle Network, will be an entertainment/shopping channel on the Internet. It will be fully integrated with the Company's downloadable book, music and movie Web sites. This site will include two eCommerce sub sites: WineCentral.Net and a site devoted to pet products.
-- Desience Division Kanakaris has developed its approach to Internet delivery based on the 25-year experience of wholly owned subsidiary Desience, which creates proprietary enclosure systems for Internet and intranet applications of NASA, Bloomberg Financial, IBM, Apple and other government agencies and Fortune 500 companies.
Further information on Kanakaris:
Kanakaris Communications is publicly traded on the OTC Bulletin Board and in Germany. For further information on Kanakaris Communications (www.kanakaris.com), contact Colby Marceau, director of Public/Investor Relations, at 714/444-0560; fax: 714/549-8970; e-mail: info@kanakaris.com; 3303 Harbor Blvd., No. F-3, Costa Mesa, Calif. 92626.
Effective start date for some of the newly announced members of the Kanakaris board and management team is between July 1 and July 15. This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the"Act"). In particular when used in the preceding discussion, the words "plan," "confident that," "believe," "expect," "intend to" and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act andare subject to risks and uncertainties, and actual results could differ materially from those expressed in any forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings, and other risks.
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