M&A West Inc. Announces Its Strategy to Acquire Undervalued Technology and Internet Companies
SAN BRUNO, Calif.--(BUSINESS WIRE)--Aug. 18, 2000--M&A West Inc. (OTCBB: MAWI), a technology holding company, announced today its strategy to acquire undervalued Internet and technology companies.
The recent slump in Internet stocks has triggered an avalanche of struggling or failed technology companies. Investors are watching companies with a more skeptical eye, and much of the funding has dried up for all but the most promising organizations. The resulting depreciation in hundreds of technology and Internet companies' stock prices provide tremendous opportunities for companies in a strong cash position.
M&A West believes it is ideally positioned to take advantage of these opportunities. Yesterday, the company announced its record revenues and earnings. The company's annual net income, combined with unrealized gains represented $1.44 per share or $14 million. In addition, M&A West enjoys access to even more cash. This means that the company doesn't necessarily have to dilute its stock to successfully execute its acquisition strategy.
"We have done extensive analysis, screening and evaluation over the past 120 days to identify undervalued opportunities in the market. We believe there are dozens of well-run companies that are trading at or even well below their asset value. In many cases, the cost of acquiring these troubled companies can be significantly less than it would take to build a similar business from scratch. They provide lucrative opportunities for consolidation, break-up and roll-ups," said Scott Kelly, president and CEO of M&A West Inc.
M&A West has already started discussions with several potential candidates and the first acquisition(s) is expected to be announced within the next 30-45 days.
"Unlike other Internet incubators, who may fund Internet companies in the hope that they will make money and go public in the distant future, our primary focus is on monetizing transactions in the short run. We don't make investments in companies unless we feel certain that we can get a very high return on our investment within 6-18 months. Our acquisition strategy is designed accordingly to enable us to make investments in severely undervalued companies with a clearly executable plan for our profitable exit," added Kelly.
About M&A West
M&A West Inc. has several business objectives. The company wants to position itself as a leader in the acquisition and development of Internet and technology companies. M&A West also provides seed capital to newly emerging growth companies. Through a network of related companies, it can offer both its portfolio companies and other emerging micro-cap companies a full line of business services to increase the awareness of their business.
Other companies in this space include Internet Capital Group Inc. (Nasdaq:ICGE), CMGI Inc. (Nasdaq:CMGI), GSV, Inc. (Nasdaq:GSVI) and Point West Capital Corp. (Nasdaq:PWCC).
M&A West Inc.'s portfolio of investments includes: eBusiness solutions company Digital Bridge Inc. (OTCBB: DGBI -- news; www.digitalbridge.com), online financial services firm VLDC Technologies (OTC: PCLO -- news; www.pcloans.com), music entertainment company Ronlan Entertainment (www.ronlan.com), Workfire Networks Inc. (www.workfire.com), venture capital portal VentureList.com (www.venturelist.com), Internet service provider Sierra-Net, electronic communications network eCapX.com (www.ecapx.com), stock research engine InvestorPackages.com (www.investorpackages.com) and computer security services provider InvincibleNet.com (www.invinciblenet.com).
Statements regarding financial matters made by M&A West, Inc. (MAWI) in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and as that term is defined in the Private Securities Litigation Reform Act of 1995. The company intends that such statements about the company's future expectations, including future revenues and earnings and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. This information is not a recommendation to buy or sell securities in MAWI. Merger Communications (Merger) is a media relations firm employed by the Company. Merger and MAWI believe that all information in this release has been obtained from sources considered reliable, but cannot guarantee that the statements presented herein are accurate or complete. Merger, its officers, directors, and employees do not currently own any MAWI stock. Merger shall receive two thousand free trading shares of MAWI common stock per month for service provided according to a long-term contract with MAWI. Merger typically has a long position in the securities of the companies in which it publishes information, and Merger may be buying or selling securities in the course of its regular business.
CONTACT: M&A West, Inc.
Rick West, 650/827-7308 (Public Relations)
rick@mawest.com
or
Merger Communications Inc. Houston
David Drake, 713/572-2560 ext. 112 (Investor Inquiries)
ddrake@mergerusa.com |
