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First Virtual Holdings Inc. Updates Market on Liquidity Issues
SAN DIEGO--(BUSINESS WIRE)--April 22, 1998--First Virtual Holdings Inc.
(NASDAQ:FVHI), a leader in advanced marketing and customer service systems for Internet commerce, today updated the market with respect to its liquidity position.
As the company disclosed in its annual report on Form 10-K for the fiscal year ended Dec. 31, 1997, the company will need to raise additional capital to fund its operations, as well as to develop new and enhanced services and to respond to competitive pressures.
If adequate funds are not secured, the company's ability to operate in accordance with its plans, or at all, will be severely jeopardized. Since filing its annual report on Form 10-K, dated March 27, 1998, the company has been unable to obtain additional capital.
The company has entered into a non-binding letter of intent with a group of investors, including SOFTBANK Holdings Inc. The non-binding letter of intent contemplates, among other terms, that the company issue and sell to the investors a number of shares which would constitute a majority of all outstanding shares of the company's Common Stock at a price of $0.60 per share. Such a transaction would result in substantial dilution to existing holders of the company's Common Stock due to the number of shares issued.
The non-binding letter of intent is subject to significant contingencies and conditions, some of which relate to actions and consents of third parties which are outside the control of the company. There can be no assurance that the company will enter into a
binding agreement with these or other investors or that alternative sources of capital will be available. The company currently anticipates that, absent a significant infusion of capital, it will be unable to fund expenses as of the end of April 1998.
Founded in 1994, First Virtual Holdings Inc. is a leader in advanced marketing and customer service systems for Internet commerce. The company pioneered secure online payment systems and now focuses on supplying an integrated system for relationship-based transactive messaging using standard e-mail. First Virtual maintains
its headquarters in San Diego, as well as a data center in Dallas. The company has strategic relationships with First Data Corp. and Paymentech Inc.
First Virtual Holdings Inc. 11975 El Camino Real, Suite 300, San Diego, Calif.,
92130. Tel: 619/793-2700; fax: 619/793-2950; e-mail: info@firstvirtual.com; website:
www.firstvirtual.com.
CONTACT: First Virtual Holdings Inc.
John Stachowiak, 619/350-3540
jstach@fv.com
Todd Savitt, 619/350-3539
tsavitt@fv.com
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