Hitsgalore.com To Raise $10 Million Cash In Joint Venture
RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--Oct. 7, 1999-- Hitsgalore.com, Inc. (OTC BB:HITT) announced today that the Company has entered into an agreement with the Amrhein Foley Group of Southern California to raise $10 Million in cash.
The strategic capital raised will help fund a new Investment/IPO portal site to be developed and operated by Hitsgalore.com in a joint venture with the Amhrein Foley Group.
The terms of the agreement are for Hitsgalore.com to receive a $1.5 Million placement within 30 days, and a second private placement for $8.5 Million within 90 days. Hitsgalore.com will allocate about half of the initial infusion to launch the new site early in the 1st quarter of 2000. The balance of all other funds raised will be used for Hitsgalore.com's other capital needs.
The Company's Chairman, Dorian Reed, stated, ``Having the Amrhein Foley Group as a strategic partner works great for Hitsgalore.com. We not only get access to needed operating capital, but we also will have an incredible opportunity to expand the services of hitsgalore.com to include the new investment and IPO marketplace.'
The Company will provide more details on the financial site in future releases since many features of the new site are being kept confidential. The site include live real-time web broadcasting from Hitsgalore.com studios to be located in Irvine, California. The Amrhein Foley Group will provide financial content, including guests, and advertisers for the daily broadcast.
Pete Foley, Co-Founder of Amrhein Foley Group said, ``We think the Hitsgalore business model is perfectly suited for this new venture. Hitsgalore has the technology and know-how to deliver a top quality financial site. We're pleased to joint venture with them, and we have the needed commitments from our investment partners to bring the financial resources to Hitsgalore.'
Bob Thompson, Chief Financial Officer for Hitsgalore.com said, ``This is the kind of strategic capital that Hitsgalore.com will continue to develop and seek. We can use these funds to stabilize the Company's rapid growth. Initial projections of what the new financial site could generate, in terms of revenue, are impressive.'
Hitsgalore.com (http://www.hitsgalore.com) has a unique business model of giving away free banners, lifetime banner placement, and other Portal Services. The Company believes its business model compares favorably with other Internet music portals such as MP3.Com Inc. (Nasdaq:MPPP - news), Musicmaker.com Inc. (Nasdaq:HITS - news), CDNow Inc. (Nasdaq:CDNW - news) and Liquid Audio Inc. (Nasdaq:LQID - news),and with search engine companies such as Lycos, Inc. (Nasdaq:LCOS - news), GoTo.com, Inc. (Nasdaq:GOTO - news), Infoseek Corporation (Nasdaq:SEEK - news) and Yahoo! Inc. (Nasdaq:YHOO - news). |
