NACT - NewAgeCities.com Signs Merger Agreement with New Leaf
MARIETTA, Ga., Apr 11, 2001 (BUSINESS WIRE) -- NewAgeCities.com, Inc. (OTC BB:
NACT), announced today that on April 6, 2001 signed an agreement, to merge with
Al Wali Corp. d/b/a New Leaf Distributing, the leading supplier of wholesale
products to New Age business owners.
Under the terms of the agreement, New Leaf will receive approximately $2
million, including operating capital over the course of three years. In
addition, the New Leaf corporate shareholders will receive approximately 9.2
million shares of newagecities.com stock with newagecities.com retaining the
right to repurchase 3.2 million of those shares back within three years.
Joseph Ardito, CEO of newagecities.com said, "We're very excited about finally
signing this agreement. There were many details to work out, but our outstanding
relationship with the New Leaf management made it go much easier. Now that this
step is complete, we can focus all of our efforts on completing the capital
raise required to move this process, and the new company forward."
"Everyone here at New Leaf is very excited about the possibilities this merger
brings about and the fact that we have signed the agreement," stated Richard
Bellezza, CEO of New Leaf. "The combined strengths of these two companies will
take the new company well beyond where each is now."
About NewAgeCities.com, Inc.
NewAgeCities.com, Inc. (www.newagecities.com), located in Marietta, GA, is the
leader in bringing the $40 billion New Age marketplace online. Its network of
Web sites provide a comprehensive source of related products, services, and
interactive educational and informational content for both New Age businesses
and consumers.
About New Leaf Distributing
New Leaf Distributing, located in Lithia Springs, GA is the largest wholesale
distributor of New Age products in the world. In 1999 & 2000 the company's
annual revenues were approximately $24 million.
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.
CONTACT: Newagecities.com, Inc., Marietta
Ken Shenkman, 770/948-7845
ken@newagecities.com |
