IFTP News - just out
(Applies to: IFTP)
Infotopia Signs Letter of Agreement for $20,000,000 Financing
BOSTON, Aug 4, 2000 (BUSINESS WIRE) -- Infotopia Inc. (OTCBB:IFTP) announced
today that it has signed a Letter of Agreement for a $20,000,000 financing
package. Under the terms of the agreement, the company will be able to draw on
the financing as needed, at its discretion, over the next thirty-six months.
Ernest Zavoral, Infotopia's President, announced: "This deal is a home run for
our company. After sorting through at least a dozen financing offers, we have
picked a very secure and honest partner. The terms of the deal allow us to raise
money as we need it and there are no hidden traps like preset equity values or
floorless exercise prices. We chose this package because it is an outstanding
value to our shareholders. It allows us to finance our operations and inventory,
and will help us reach profitability much faster than we would have otherwise."
In order to prepare for future exercises of the financing, Infotopia's board of
directors has approved an increase in the number of authorized shares from forty
million to one hundred million.
Mr. Zavoral continued, "Although we are increasing our authorized shares it does
not mean that any more shares are issued or in the public float. It is important
that people realize that increasing a company's authorized shares is quite
normal and does not mean dilution. Any time a company does a financing deal it
is important to the financier that the company has sufficient equity collateral
to make it a viable entity. As this financing helps us put great products on the
market and brings revenues in the door, our shareholders' interests will be
greatly served."
Infotopia, Inc. intends to file a registration in the next two weeks to register
shares to provide sufficient equity collateral, to be able to utilize this
equity line upon the effectiveness of the registration. This registration
statement will contain all the details of this 20 million dollar equity line.
About Infotopia:
The Company's mission is to produce, market, and distribute an expanding line of
high-quality, innovative health, fitness and consumer products. Infotopia seeks
out products that deliver superior value, outstanding quality, and competitive
prices to best satisfy customer demand. The Company markets its products to
consumers through a variety marketing channels, including infomercials,
distributor alliances, and Internet e-commerce. The management at Infotopia is
committed to increasing corporate revenues and profits.
This news release includes "forward-looking statements" that include risk and
uncertainties. The forward-looking statements in this release are made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Actual results may differ materially due to a variety of factors,
including without limitation the Company's ability to produce and market
products and/or services and other risks detailed from time to time in their
Company's reports filed with the Securities Exchange Commission.
CONTACT: Strategic Communications
Matthew Westfield
775-327-6215
URL: businesswire.com
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
Copyright (C) 2000 Business Wire. All rights reserved.
-0-
KEYWORD: MASSACHUSETTS
INDUSTRY KEYWORD: CONSUMER/HOUSEHOLD
E-COMMERCE
INTERNET |
