(BSNS WIRE) Internet Incubator Repositions Itself in New Market Conditions; Venturelist unit to file SB-2 this week and distribute stock dividend
SAN BRUNO, Calif.--(BUSINESS WIRE)--Oct. 24, 2000--M&A West Inc. (OTCBB: MAWI), a technology holding company, announced today changes in its business model. Instead of focusing solely on Internet companies and providing seed capital to start-up companies, M&A West is repositioning itself as a technology merchant bank that will acquire, invest in and develop later stage technology companies into cohesive units that can be either taken public or sold off within 6-18 months.
"The recent slump in the stock market has triggered an avalanche of struggling or failed technology companies. This provides tremendous opportunities for companies like ours that have a strong cash position. M&A West will now focus primarily on acquiring and developing technology companies with the right kind of fundamentals, bundling them together to build critical mass and synergy, and then selling or spinning them off," explains Scott Kelly, president and CEO of M&A West, Inc. "I believe we will continue to see a major shift from dotcoms to more traditional brick and mortar type of companies with higher earnings potential. That's why we are broadening our scope of possibilities, no longer focusing just on Internet companies. Our recent letter of intent to purchase The Mobile Office Outfitter is our first big move in this new direction.
"In the near term, we expect one of our companies to go public or be sold off each quarter. We'll also capitalize on our proven strengths by providing a host of consulting services to both the companies we invest in as well as up to ten or twelve other outside companies per year that are just in need of one or more of our services. We will not only assist companies in raising capital, we will also assist them with potential mergers and acquisitions," says
Kelly.
The company recently announced that they will be distributing a stock dividend on its Venturelist unit on a one for five basis to M&A West, Inc. shareholders of record on November 15, 2000. This distribution will be completed via an SB-2 filing this week.
The company will continue to develop it e-security company,
invinciblenet which currently has agreements in place with Identix (AMEX: IDX) and Verisign among others, into a separate operating unit. This change in strategy reflects M&A West's core business philosophy. Instead of choosing an Internet incubation business model like Internet Capital Group (NASDAQ: ICGE) or CMGI, Inc. (NASDAQ:CMGI), M&A West has chosen to concentrate on monetizing transactions.
Every investment the company makes is done so with a very clear, short-term exit strategy. And, since M&A West is no longer limiting itself to investing only in Internet-related companies, the firm now has much more flexibility and is able to make frequent, quick adjustments in its short-term strategy. This should allow M&A West to keep a constant flow of high-potential, low-risk deals in the pipeline at all times.
About M&A West
M&A West, Inc. has several business objectives. The company is a technology merchant bank that acquires, invests in and develops technology companies into cohesive units that can be either taken public or sold off within 6-18 months. M&A West also provides various mergers and acquisitions related consulting services and helps smaller publicly traded NASDAQ and Over-the-Counter companies to raise capital they need. Through a network of related companies, M&A West can also offer both its portfolio companies and other developing companies a full line of business services to increase the awareness of their business.
Recent news releases and additional information about M&A West Inc. may be found on the company's home page at www.mawest.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.
CONTACT: M&A West, Inc.
Rick West, 650/827-7308 (Public Relations)
Rick@mawest.com
Jerry Frear, 570/322-8061 (Investor relations)
Jerry@mawest.com
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