Adatom.com Raises $4 Million of Private Financing
MILPITAS, Calif.--(BUSINESS WIRE)--March 2, 2000--Adatom.com, Inc. (Nasdaq:ADTM), an Internet superstore and e-commerce enabler, today announced that the Company has closed on a private placement of two million shares of common stock yielding gross proceeds of $4 million. The sale was made to several accredited investors. The Company agreed to use its best efforts to register the shares under the Securities Act of 1933 for resale within 60 days of the closing. The Company did not engage a placement agent.
Adatom will use the $4 million in new capital for working capital including the payment of accrued liabilities of approximately $1.5 million and a sales and marketing campaign focusing on its business-to-business offering, Adatom's E-commerce Solution (ESP), as well as creating further consumer awareness of its Web site, www.adatom.com.
Michael Pruwitt, President of Avenal Financial Group and one of the lead investors on this funding transaction, stated, "After spending considerable time with Adatom's management team and advising them on several key strategic initiatives, I recognized the significant short and long term growth potential of the Company. As such, it was an easy decision to personally invest in Adatom."
Richard Barton, Chief Executive Officer and President of Adatom.com, Inc., added, "This financing provides us with a base to focus on our business-to-business component. Further, it indicates approval and support for our business plan and model and demonstrates the investment community's continued confidence in the Company and its management. Our success in establishing relationships with over 1000 qualified manufacturers and suppliers coupled with the growing popularity of our online superstore is establishing Adatom.com as a leading contender in the e-tailing business. We intend to use this capital to primarily accelerate the Company's growth by properly positioning our ESP product as the ultimate, cost-effective e-commerce enabling solution for both online businesses, as well as traditional brick and mortar companies. Consequently, businesses will be empowered to gain an 'instant presence' on the Internet -- without the costs associated with warehousing and fulfillment, yet the added benefit of dramatically reduced general and administrative expenses."
The Company also reported that Company CEO and President Richard Barton has agreed to accept 172,057 shares of unregistered common stock of Adatom.com valued at $500,000 in consideration of partial repayment of a $700,000 loan to the Company for working capital made over the past three months.
About Adatom.com, Inc.
Adatom.com, Inc. is a growing, e-commerce company, which offers over three million product SKUs (stock keeping units) for the home, individual and office and provides e-tailing solutions for other businesses. By leveraging its proprietary e-commerce infrastructure and efficient distribution system, the Company reaches both the business-to-business market with E-commerce Solution Program (ESP), and the business-to-consumer market with its Internet superstore, www.adatom.com. Adatom benefits from both its business-to-business and business-to-consumer capabilities to reduce operating costs and provide price savings and increased customer service for consumers. Adatom.com provides a comprehensive product mix of name brand products in 29 product categories.
Statements in this news release that are not descriptions of historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expect", "intends", "believes", "plan", "anticipates", and "likely" also identify forward-looking statements. All forward looking statements are based on current facts and analyses. Actual results may differ materially from those currently anticipated due to a number of factors including, but not limited to, history of operating losses, anticipated future losses, competition, future capital needs, the need for market acceptance, dependence upon third parties, disruption of vital infrastructure and intellectual property rights. All forward-looking statements are made pursuant to the Securities Litigation Reform Act of 1995. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the Securities and Exchange Commission. The Company refers readers particularly to the Registration Statement on Form S-4 of HealthCore Medical Solutions, Inc. (File No. 333-87207) filed with the Securities and Exchange Commission on (September 16, 1999). The Company recently merged with HealthCore.
CONTACT:
Adatom.com, Inc., Milpitas
Michael M. Wheeler, Controller
408/935-7979
or
Continental Capital & Equity Corporation
Michael H. Irving, 407/682-2001
irv@insidewallstreet.com
KEYWORD: CALIFORNIA
BW1563 MAR 02,2000
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