Rights Offering to Stockholders Announced by HouseHold Direct.com, Inc.
NEW YORK, Aug. 3 /PRNewswire/ --
HouseHold Direct.com, Inc. (OTC Bulletin Board: BYIT - news) announced today a rights offering of 4,805,891 ``restricted shares'' of its Common Stock, $.001 par value, to its stockholders of record as of July 25, 2000. Stockholders will be entitled to purchase one share of Common Stock for each five shares of Common Stock owned by them at the rate of $.30 per share.
John Folger, President of the Company, stated that since the shares to be sold pursuant to the rights offering will be ``restricted securities'' and cannot be resold in the public market for one year, the Company did not believe that the offering would have any material impact on the public price of the Company's free trading shares of Common Stock.
Through the vehicle of the rights offering, Mr. Folger commented, the Company, which has just been restored to trading on the OTC Bulletin Board, intends to raise additional working capital, permit existing stockholders to acquire additional equity in the Company at current price levels, and reduce the Company's short term liabilities as members of management have agreed to convert in excess of $200,000 owed to them by the Company into equity by exercising their rights and purchasing shares of Common Stock.
An aggregate of up to 4,805,891 shares may be purchased under the rights offering which will expire on September 15, 2000. Stockholders will receive from American Stock Transfer and Trust Company, the Company's Transfer Agent and rights offering Subscription Agent, all of the documentation required to exercise their rights and purchase shares of Common Stock. Stockholders whose shares of the Company are registered in the names of brokerage firms or depositories will be contacted directly by such firms or depositories. Any stockholder who does not receive materials from the Subscription Agent, a brokerage firm or depository should contact the Subscription Agent or the Company.
Safe Harbor for Forward-Looking Statements: Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product price volatility, product demand, market competition, risk inherent in the company's domestic and international operations, imprecision in estimating product reserves and the company's ability to replace and expand its holdings.
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SOURCE: HouseHold Direct.com, Inc.
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