Raptor Investments Closes Acquisition of EZ Auctions & Shipping and Issues Outlook - 6/21/2005 8:39:01 AM
PLANTATION, Fla., Jun 21, 2005 (BUSINESS WIRE) -- Raptor Investments, Inc (RAPT) announced this morning that it closed the acquisition of Tampa, FL based EZ Auctions & Shipping on Monday, June 20th, as scheduled. The five year old eBay Power member, trading assistant, drop store and worldwide shipping and packing company represents Raptor Investments' first completed acquisition pursuant to the Company's strategic shift into the burgeoning eBay (EBAY) drop store industry.
Jamie DeSane, acting CEO of Raptor commented, "We are extremely pleased to close the acquisition on time, both for the ability to immediately implement our business objectives moving forward, and also to set the precedent of delivering on our promises to the investing public. The acquisition of EZ Auctions & Shipping is a major milestone for Raptor shareholders, bringing with it immediate cash flows, a great management team and solid reputation as an eBay seller, exhibited by over 4,000 completed transactions and customer feedbacks, representing more than twice the combined totals of our rivals, Orbit Drop & Net2Auction."
The terms of the acquisition consisted of a seat on the Board of Directors, the issuance of Preferred Shares that are convertible into restricted shares over a period of two years and a small component of freely traded shares that were pledged by a major shareholder. DeSane continued, "The terms of the transaction should demonstrate to current and prospective shareholders that we have amassed a group of seasoned professionals that recognize 'the big picture' and want to create a world class company. As such, shareholders do not have to worry about any immediate dilution in the market and should rest assured that we intend to close each of the remaining acquisitions in a similar manner."
Raptor Management also disclosed other initiatives currently underway. DeSane remarked, "We anticipate we will be able to close the acquisitions of Thrifty Brothers and HotAutoWeb very soon. In the meantime, we intend to announce the company name change this week, while we are in the process of finalizing the release of our new global brand to the public, initiation of a transfer agent switch to promote increased transparency to the public and a trading symbol change. Furthermore, the integration team has been busy speaking to individuals from IBM (IBM) Business Consulting (IBM powers the eBay website) and Microsoft (MSFT) about the integration of a state-of-the-art ERP/CRM solution that incorporates the vital retail POS (Point of Sale) and inventory management components that will power our company back-end. The implementation of this infrastructure is crucial to our corporate unification and business model. It will provide us with a level of efficiency that is unparalleled, with the aim of being the low-cost operator in our industry. Once this system is in place we will be able to scale both our retail and the 'eBay-drop-store-by-mail' operations with considerable speed without sacrificing quality service or experiencing any latency issues."
In late May 2005, Raptor Investments announced it was joining Las Vegas based Net2Auction Inc. (Pink Sheets:NAUC), subsidiary of AmeriResource Technologies, Inc. (AMRE) and Dallas based Orbit Drop, Inc. (Pink Sheets:OBDP) and Auction Mills Incorporated (Pink Sheets:AUML) in the eBay (EBAY) drop store industry. As opposed to utilizing a traditional franchising model for growth, for which Auction Mills has publicly admitted considerable difficulties in implementation, Raptor Investments has decided to manage growth through international 'eBay-drop-store-by-mail' operations and through the acquisition of community-centered retail 'thrift stores'. These stores will continue operating in their existing business while also acting as local eBay drop store 'consignment centers' under the new company brand. Each location will also serve as local corporate and estate asset disposition offices.
For further information on EZ Auctions & Shipping, please visit the Company's website: ezauctionsandshipping.com or call (727) 724-EBAY.
SOURCE: Raptor Investments, Inc.
For Raptor Investments, Plantation
Brass Bulls Corp.
Marc Lovito, 954-340-2464
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