I don't think I need say more.
Bob Sims
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Hitsgalore.com Announces Agreement in Principle for $100 Million Equity Investment
May 10, 1999 09:56 AM
RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--May 10, 1999--
Hitsgalore.com, Inc. HITT today announced that it has an agreement in principle with
the Life Foundation Trust for an equity investment of $100 million at $25 per share.
Under the terms of the agreement in principle the Trust will transfer investment securities
to Hitsgalore.com in exchange for 4 million shares of restricted common stock that the
Trust will hold under a lock-up agreement. Completion of the transaction is subject to
execution of definitive agreements and to due diligence and the confirmation of certain
legal matters. Furthermore, authorization of the issuance of the additional shares will be
submitted to the shareholders for approval.
Jeanette Wilcher, trustee for the Life Foundation Trust stated: "We are pleased with the
direction Hitsgalore.com has taken, and our confidence in management of the company
is high."
Steve Bradford, CEO of Hitsgalore.com, said, "This commitment will add to the
financial strength of the Company, and will help us bring to market new technologies
currently under development. We are also pleased with the vote of confidence from the
Trust and other shareholders that have indicated their commitment to be long-term
investors."
Hitsgalore.com projects positive cash flow from its unique business model of giving
away free lifetime banner placements at its website at hitsgalore.com, and
generates sales from its sponsorships, Keyword Bid & Rank program and Local City
Editions. The company believes this compares favorably with other Internet portals and
search engine companies such as Lycos, Inc. LCOS , Excite, Inc. XCIT , Infoseek
Corporation SEEK and Yahoo! Inc. YHOO . Hitsgalore.com strives to provide
porn-free searching and does not accept or encourage any porn or adult-content listings
on its site.
Hitsgalore.com recently announced a major radio ad campaign. The decision to use
radio is in large part due to the successful performances of other internet companies
which have successfully used radio to drive market awareness and acceptance, such as
priceline.com PCLN , Amazon.com AMZN and eBay Inc.EBAY . The ad campaign is
slated to kick-off during the last week of May. Hitsgalore.com believes the radio
campaign and the Internet on-line advertising conducted by DoubleClick Inc. DCLK
will positively impact revenues, and the company is taking steps to handle the increased
traffic anticipated, adding additional hardware and personnel.
Included in this release are "forward-looking" statements within the meaning of Section
27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of
1934, as amended, and as that term is defined in the Private Securities Litigation Reform
Act of 1995. Although the company believes that the expectations reflected in |
