SW, check out MCNS again. They have already applied for Big Board listing and big news is out on financing, partnerships. This is going to be a Big Internet company. Wall Street will love this company because of the aging baby boomers and the fact they will attract major pharmaceutical advertising dollars.
Mediconsult.com Files Preliminary Prospectus, Completes Private Financing, and Announces Several New Corporate Developments
Canadian Corporate News - February 28, 1999 23:36
NEW YORK, NEW YORK--Mediconsult.com (OTC:MCNS) today announced a number of corporate developments, including that it has filed a preliminary prospectus with the SEC, completed a $3.2 million private financing, applied for National Market Listing status withNASDAQ, and entered into several strategic relationships to increase visitor traffic and revenues.
Preliminary Prospectus - On February 26, 1999 the Company filed a preliminary prospectus (S-1) with the Securities and Exchange Commission indicating it will seek to sell common shares to raise up to $35 million. The managing underwriters for the transaction are ING Baring Furman Selz LLC and Volpe Brown Whelan & Company.
Private Financing Prior to filing the S-1 with the SEC, on February 25, 1999 the Company raised $3.2 million in a private placement of 506,329 shares of senior preferred stock, sold at a price of $6.32 per share. The Company also issued warrants to purchase 224,000 shares of senior preferred stock at the same price. The senior preferred stock is convertible into an equal number of common shares. The shares and warrants were sold to Nazem & Company IV, L.P. Transatlantic Venture Fund C.V. (a joint venture between Nazem & Company and Banque Nationale de Paris).
NASDAQ Application Separately from the SEC filing the Company has applied for National Market Listing status with the NASDAQ.
New Marketing Alliance - In February 1999 the Company entered intoa memorandum of agreement outlining the principal terms of a 50/50joint venture with CommonHealth LLP, the leading worldwide healthcare advertising firm. CommonHealth is an affiliate of Ogilvy & Mather and J. Walter Thompson. The joint venture is beingformed to offer innovative multimedia marketing and advertising solutions to pharmaceutical and other healthcare companies.
Strategic Initiatives to Increase Visitor Traffic. To improve the depth and breadth of its content and increase visitor traffic the Company has recently completed two strategic initiatives:
- Cyberdiet.com Inc. In February 1999 Mediconsult.com entered intoa memorandum of agreement outlining the principal terms of an exclusive management arrangement with Cyberdiet.com. The agreementgrants Mediconsult.com the exclusive right to: (i) place advertisements on the Cyberdiet.com Web site; (ii) to link trafficto Mediconsult.com's other Web sites; and (iii) to manage the content on the Cyberdiet.com Web site. Mediconsult.com has an option to purchase Cyberdiet.com, and this company has under certain circumstances, the right to cause Mediconsult.com to purchase it, in exchange for 400,000 shares of Mediconsult.com common stock.
- INCIID. In February 1999 Mediconsult.com entered into an exclusive sponsorship agreement relating to INCIID.org, a Web sitefocused on women's infertility information and issues. This agreement grants Mediconsult.com the sole right to: (i) place advertisements on the INCIID Web site; (ii) to link traffic to Mediconsult.com's other Web sites; and (iii) to manage the contenton the INCIID.org Web site.
During January 1999 (on a pro forma basis as if all Web sites acquired, managed or sponsored on the first day of the month) the Company's owned managed and sponsored Web sites hosted more than 1.3 million visitors viewing over 11.1 million pages of information.
About Mediconsult.com
Mediconsult.com is a leading provider of patient-oriented healthcare information and services on the World Wide Web. The Company's Web sites provide a trusted source of comprehensive and easy to understand medical information and are designed to empowerconsumers through increased education regarding medical conditionsand treatment alternatives. The Company's Web site, www.mediconsult.com, has received awards from more than 30 independent organizations including Encyclopedia Britannica (one of the 76 "Best of Web" sites out of 125,000 reviewed), The Lancet("An exceptionally well-designed, easy to navigate site brimming with health news and patient information"), Popular Science (one of the "50 Best of the Web" for 1998), and in January 1999, the Company was one of 110 Web sites nominated for a "Webby" by the International Academy of Digital Arts and Science.
For information on other Mediconsult.com services visit the corporate site at www.mediconsultinc.com.
Certain statements in this release are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Potential risks and uncertainties include such factors as acceptance of the Company's products and services, competition andother risks described in the Company's filings with the Securitiesand Exchange Commission, including the S-1 filed on February 26, 1999, the report on Form 10-KSB for the year ended December 31, 1997 and Form 10QSB for the period ended September 30, 1998.
All trademarks mentioned belong to their respective owners. Additional company and product names may be trademarks or registered trademarks of the individual companies and are respectfully acknowledged.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mediconsult.com
John Jennings
Director, Investor Relations
(888) 316-1133
Email: jjennings@mediconsult.com
INDUSTRY: HEA
SUBJECT: NWS
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