HouseHold Direct Announces $10 Million Financing Package and Immediately Begins Applying Funds to Drive Refocused Business Strategy
NEW YORK--(BUSINESS WIRE)--Jan. 29, 2001--HouseHold Direct.com, Inc. (OTCBB: BYIT - news). HouseHold Direct announced today it has signed a definitive financing contract for a $10 million equity credit line with JJT Investors, an investment fund associated with Wall Street Financing Group of Boca Raton, Florida. Over the past several months, HouseHold Direct has been negotiating to procure this funding through Wall Street Financing, a private full service capital investment concern, focused upon the needs of emerging micro cap companies.
A bridge-financing package of $250,000 is part of the larger agreement, from which the Company has already drawn funds, and will continue to do so as scheduled over the next 30 days. The Company intends to focus working capital upon immediate needs of the core operation to ensure ongoing financial stability and the rapid implementation of its consolidation by acquisition strategy. Funds will be allocated towards completion of a timely annual filing with the SEC, continued payments against the America's Hometown Brand Center (AHBC) acquisition, pending wholesale club acquisitions and continued Web Site development.
HouseHold Direct has the ability, and is working out the schedule by which to draw against the larger equity package, as necessary to drive the consolidation strategy, with careful consideration to minimize dilution of shareholder equity. The company also expects to soon have the ability to obtain funding through its SB-2 Registration, with a similar consideration to dilution.
The immediate objective is to maximize the results of this funding commitment by rapidly expanding the Company's asset and revenue base in a material way. This fits into the overall goal of creating the fundamentals to support an increasing share value and a possible move to a higher exchange where access to capital is less difficult, and a healthier trading environment is more likely to evolve. This goal dovetails into the Company's existing relationship with Affiliated Holdings, which is fully prepared to support major exchange listings in both national and foreign markets, at a higher price level.
The financing package is the result of extensive negotiations conducted during the recent realignment of capital markets. It will replace the package that was formerly announced through Spencer Edwards and their European Investment Group, which was compromised during this realignment.
John Folger, President of HouseHold Direct commented: ``We feel fortunate to have obtained this new funding commitment at a time when access to capital has become especially difficult in the developmental markets. This accomplishment is viewed as a strong expression of faith in our business model.''
The belief was further echoed in the words of Anthony Tomasso, President of Wall Street Finance Group, who stated: ``We search for companies that have significant upside potential within the micro cap market, and especially those that are significantly undervalued. We believe that our investment in HouseHold Direct represents just such an investment.''
Further details of the funding package and its relation to the overall business strategy will be discussed in an upcoming teleconference to be announced by the Company.
About HouseHold Direct
The mission of HouseHold Direct is to empower consumers by creating the largest and most powerful private wholesale consumer-buying network in the world. HouseHold Direct is pursuing a market consolidation strategy within the wholesale membership industry through its ``brick and click'' shopping platform. This platform will become integrated into a complete web based discount shopping solution of international proportions. Central to this strategy is the ability to offer direct manufacturer and distributor pricing, extensive information, merchandise expertise, fulfillment capabilities, in-home delivery and quality customer service to our members. This superior personalized shopping environment and consumer experience creates the ability to ``live much better for much less''.
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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