FAS has been sold. Here is the news release:
Rare Medium Announces Completion of Sale of Fresh Air Solutions
NEW YORK, Oct. 15 /PRNewswire/ -- Rare Medium Corp. (Nasdaq: RRRR) (http://www.raremedium.com) today announced the completion of its plan to transform itself into a pure Internet company by closing a transaction in which it sold a majority interest in its remaining air conditioning business, Fresh Air Solutions (FAS), to an FAS management group.
Under the terms of the agreement, the management group paid Rare Medium $1.5 million, including cash of $1.125 million and a note for $375,000, and relieved Rare Medium of all the liabilities of FAS of approximately $7.0 million. Additionally, Rare Medium retained a 40% passive interest in FAS, which will permit its shareholders to participate in any growth which that business may achieve in the future. Rare Medium will have no future operational or funding responsibilities for FAS, which reported losses in excess of $3.5 million during the first six months of 1998.
Rare Medium received a fairness opinion with respect to the transaction from Legg Mason.
"The true value of this transaction significantly exceeds the tangible proceeds," said Glenn S. Meyers, President and Chief Executive Officer. "This sale enables us to devote 100 percent of Rare Medium's energies to solidify its position as a leading Internet service provider. Rare Medium and FAS can now focus completely on their own strengths, increasing the probability of each separate business being successful. We wish FAS well."
About Rare Medium
Dealing primarily with Global 2000 clients, Rare Medium, Inc. is a strategic Internet services firm, helping clients develop Internet strategies, improve business processes and develop interactive content using Internet-based technologies. To accomplish this, Rare Medium provides clients with Internet business strategy consulting, marketing, creative design, and development, needs analysis, architecture planning, Internet, Intranet, and Extranet solutions, hosting and maintenance.
Except for historical matters contained herein, the matters discussed in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that these forward-looking statements reflect numerous assumptions and involve risks and uncertainties that may affect ICC Technologies, Inc. d/b/a Rare Medium Corp. and its subsidiaries' business and prospects and cause actual results to differ materially from these forward-looking statements. Among the factors that could cause actual results to differ are Rare Medium's limited operating history; competition; low barrier to entry; reliance on strategic relationships; rapid technological changes and those risks discussed in the Company's filings with the SEC.
SOURCE Rare Medium Corp.
CO: Rare Medium Corp.; Fresh Air Solutions
ST: New York
IN: CPR MLM
SU: TNM
10/15/98 06:35 EDT prnewswire.com
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