NACT - Previous Merger news with Impact date
News release showing impact date of "within 120 days" which is roughly
34 days from now. (April 3rd)
New Entity Would Have Revenues of More Than $25 Million
BOCA RATON, Fla.--(BUSINESS WIRE)--Dec. 5, 2000--NewAgeCities.com Inc. (OTCBB:NACT - news) Tuesday announced that it has signed a letter of intent to merge with New Leaf Distributing Co. of Lithia Springs, Ga., the largest distributor of New Age products in the world.
New Leaf currently generates revenues of approximately $25 million a year and has a customer base of more than 6,000 retail stores.
The merger, scheduled to be completed within the next 120 days, will be accomplished via a combination of cash and stock. NewAgeCities.com has contracted with Dover Capital Corp. of Houston, to raise the required funds to complete the merger.
Joseph Ardito Jr., CEO of NewAgeCities.com said: ``This merger is a tremendous step forward in our goal of becoming the largest business-to-business products and services company in this $40 billion industry. The plan is to combine these companies and employ new technologies to create one entity with significantly higher revenues and profits than each would generate separately.
``Our strategy is to combine two companies, one traditional and one Internet, into a market leading `Click & Mortar' business that will spawn additional expansion in revenues and profits by offering products and services to both retailers and wholesalers over the Internet.
``Combining the core business resources of these two industry leaders will enable the new company to experience greater growth, with reduced costs, than either could achieve on a stand-alone basis, and will allow us to take the new company to greater heights.''
About NewAgeCities.com Inc.
NewAgeCities.com (www.newagecities.com), located in Boca Raton, is implementing an Internet-based consolidation of the ``New Age'' and alternative health markets via its network of Web sites.
The sites provide a comprehensive source of related products, services, and interactive educational and informational content for more than 75,000 registered users and the 20 million plus people that make up their target market.
This announcement contains forward-looking statements that involve risks and uncertainties, including those relating to the company's ability to grow its user and advertiser base. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the company's limited operating history, the competitive environment in which the company competes, the early stage of the Web as an advertising and electronic commerce medium, the company's dependence on advertising, sponsorship and commerce revenues, the company's dependence on strategic relationships to drive traffic to its Web sites, consumer acceptance of the company's new products and services, the company's ability to develop and integrate new technologies and services into its existing services and into new platforms, such as broadband, and the increased use of the Web for commerce. More information about the potential factors that could affect the company's business and financial results is included in the company's filings, available via the Securities & Exchange Commission.
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Contact:
NewAgeCities.com Inc., Boca Raton
Ken Shenkman, 561/989-0808
E-mail: investors@newagecities.com
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