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(COMTEX) B: Sitestar Increases Its Offer to Acquire Mothernature.com B: Sitestar Increases Its Offer to Acquire Mothernature.com to $1.15 Per Share; All Cash Offer Represents a 53% Increase From Original Offer Price
ENCINO, Calif., Sep 22, 2000 (BUSINESS WIRE) -- Sitestar Corporation (OTCBB:SYTE), an Internet holding company, today announced that it has increased its offer to acquire all the outstanding shares of Mothernature.com
(NASDAQ:MTHR) to $1.15 per share.
This new price represents a 53% increase from the original offer price submitted to Mothernature.com's management and represents a 163% premium from its closing price of $0.4375 per share the day the original Sitestar offer was formally
submitted on August 23, 2000. The new offer is valued at approximately $18.06 million, up from $11.36 million.
As a result of Sitestar's new cash offer and the recent stock-for-stock merger offer submitted by Vitacost.com, Sitestar will refrain from filing the Tender Offer Statement with the Securities and Exchange Commission pending Mothernature.com's response regarding its official position in the matter.
Sitestar stated in its offer letter that its aim is to avoid an unnecessary and costly proxy contest for control of Mothernature.com by seeking management support.
Sitestar decided to increase its offer in an effort to attract further shareholder and management support. As in the initial offer, Sitestar's offer for the Mothernature.com's shares will not be subject to financing or lengthy due diligence, and will only contain a condition providing for an out in the event of a material adverse change regarding Mothernature.com. Sitestar has once
again asked Mothernature.com's management to extend Sitestar its full support by approving the purchase of the shares.
"The significant increase in our offer price indicates our continued willingness to offer the best value to Mothernature.com shareholders and at the same time
demonstrates our belief in the strength of the brand and the viability of the business," said Clinton J. Sallee, Sitestar President and Chief Executive Officer. "We hope this offer compels management to immediately enter into a
meaningful discussion with Sitestar. Regrettably, we have been unable to find a common ground on which to conduct these conversations thus far. Despite this lack of communication, it's apparent that our all cash offer is far superior to the other offer recently submitted to Mothernature.com. We hope management, as fiduciaries, acts in the best interest of the shareholders and accepts the bid
that truly enhances shareholder value," added Sallee.
About Sitestar Corporation
Sitestar Corporation is a diversified Internet holding company that participates, through its wholly owned Web-based subsidiaries, in emerging segments of the Internet such as Internet access and e-commerce. To sustain its
growth, the Company acquires and invests in emerging Internet-related enterprises to create a broad and diverse set of core Internet businesses that deliver a variety of online solutions.
Sitestar's wholly-owned subsidiaries include Neocom Microspecialists, Sitestar.net, Soccersite.com, Greattools.com and Holland-American.com and has a
minority equity investment in Qliq-On Corporation. Sitestar corporate headquarters is located at 16133 Ventura Blvd., Suite 635, Encino, CA 91436.
Telephone 818/981-4519 and Facsimile 818/981-2658. Additional information is available on the company's Web site at sitestar.com.
Statements regarding financial matters 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, the anticipated stock dividends 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.
CONTACT: Sitestar Corporation
Clinton J. Sallee, 818/981-4519
csallee@sitestar.com
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