And don't forget the efforts of a few brave individuals to expose this fr--d run by c-----als.
Hitsgalore's Largest Customer Defaults on $20 Mln in Payments
4/17/0 20:0 (New York)
Hitsgalore's Largest Customer Defaults on $20 Mln in Payments
Rancho Cucamonga, California, April 17 (Bloomberg) --
Hitsgalore.com Inc. said its largest customer, Life Foundation
Trust, never paid for the services it received nor for its 4
percent stake in the Internet marketing company.
The trust provided 85 percent of the revenue Hitsgalore
reported for the first nine months of 1999.
Now, Hitsgalore said it's preparing to liquidate the Aden
stamp collection put up by the Life Foundation Trust as collateral
for the $20 million in missed payments -- $10 million for two
million shares of Hitsgalore and $10 million for advertising on
its Web Site.
The Rancho Cucamonga-based Hitsgalore expects to take a year
or more to sell the stamps, which it said has a catalogue value of
$50 million and a wholesale value of $20 million. First, it will
allow the trust a 20-day grace period.
``You can't just drop one of the world's rarest stamp
collections on the market all at once,' said Dorian Reed,
chairman of Hitsgalore, in a statement.
In January, the company warned that ``cash flow difficulties
could arise' unless the Scottsdale, Arizona-based trust made its
first payment soon. Hitsgalore gave the trust liberal terms-- no
money down, and a year before its money was due on April 15,2000.
Hitsgalore didn't file its annual report with the Securities
and Exchange Commission at the end of March, as required, saying
its year-end audit wasn't complete. This week, it said the report
will be filed by the end of April.
The company had $90,771 cash on hand on Sept. 31.
Its stock fell 8 cents to 70 cents, giving its 50 million
shares a market value of $35 million. The stock has declined 92
percent over the past year.
Jeanette Wilcher, trustee of the trust, wasn't available for
comment.
Life Foundation Trust, which is not a charity, says it has
charitable goals that include ``the provision of food to the
hungry, clothes and shelter to the needy, education to the
unlearned and to minister to the spiritual needs of all people.'
Its stamp collection is stored in a Manhattan warehouse,
according to Hitsgalore's SEC filings.
--David Evans through the New York newsroom (212) 318-2300 or
davidevans@bloomberg.net/tm |
