News March 08, 07:02 Eastern Time
THCG Funds Convergence MediaGroup, A Unique Youth E-Services Provider; THCG to Invest up to $5 Million in Exchange for a 20% Stake
NEW YORK, Mar 8, 2000 (BUSINESS WIRE) -- THCG, Inc. (NASDAQ: THCG) and THCG
VENTURE PARTNERS I ("THCG Ventures"), its venture funding vehicle, have acquired
a 20% stake in Convergence MediaGroup, Inc ("Convergence" or "the Company").
Pursuant to the arrangement with Convergence, THCG arranged for approximately $4
million of capital, through THCG Ventures. THCG, Inc. has committed an
additional $1 million of standby capital over the next 12 months. In addition,
THCG will provide Convergence with Venture Development services to support the
execution of the Company's strategic plan. A senior manager of THCG, designated
by THCG Ventures, has been appointed to Convergence's Board of Directors.
Convergence MediaGroup has a unique portfolio of e-services for marketers who
target the teen and young adult demographic segments. Convergence's e-services
range from development of unique, experiential e-commerce brand events
(eExperiences) to research data that evaluates their effectiveness (eFeedback).
Also included in Convergence e-services are ePartnerships, an Internet-driven
business-to-business partnership product that matches youth market promotion
partners, and eSchools, a service that develops in-school Internet programs for
major brands.
The cornerstone of the Company's product offerings is the eExperience, a fully
experiential online ecommerce event structured to deeply involve the young
consumer with the brand holding center stage. eExperiences create a level of
immersion that make the brand integral to the young consumer.
THCG will provide Convergence MediaGroup with strategic, operations, and
brand-building counsel, in addition to capital. Ed Tedeschi, Co-Head of THCG
Venture Development said, "Convergence MediaGroup provides the kind of in-depth
branding experiences for young consumers that every marketer dreams about.
Convergence conceives and executes these experiences in a way that engages young
consumers for long periods of time, literally making the brand a part of their
lives. The extraordinary expertise, talent, and innovation at Convergence
MediaGroup will have a major impact on services to youth marketers."
Azi Tabachnik, CEO of Convergence MediaGroup said, "The Convergence e-services
model gives brands a substantial advantage in the competitive teen and young
adult marketplace. eExperiences provide a quantifiable return on investment and
generate meaningful dialogue between the brand and youth consumers who buy their
products. Because our e-services are unique, we've been extremely successful in
developing long term relationships with major clients. Our partnership with THCG
will lay the groundwork to expand and scale our business worldwide."
About THCG
THCG is a global active Internet incubation firm that provides venture
development, venture banking and venture funding products and services. THCG's
mission is to build dominant companies by partnering with leading Internet
entrepreneurs and traditional brick and mortar companies migrating to the
Internet. THCG has partnered with a portfolio of Internet-related companies,
including Global Credit Services, Inc. (www.globalcreditservices.com), IT
Utility, Inc. (www.itutility.com), and Test University, Inc. THCG also has
equity interests in more than 10 additional Internet-related companies,
including ETRAVNET.COM, Inc. (OTC BB: ETVT, www.travnet.com), iBeauty.com
(www.ibeauty.com), Interleaf, Inc. (Nasdaq:LEAF, www.interleaf.com), LogNet
Systems Inc. (www.lognet.co.il), Passport New Media, Inc.
(www.yourownworld.com), TechOnLine, Inc. (www.techonline.com) RealTimeImage Inc.
(www.realtimeimage.com), SoftWatch Ltd. (www.softwatch.com), SunShine Media
Corporation (www.bikini.com) and webMethods, Inc. (www.webmethods.com). THCG's
web site is located at www.thcg.com.
About Convergence MediaGroup, Inc.
Convergence MediaGroup leverages the Internet to revolutionize the way brands
are marketed to youth. The Company's products and e-services include:
eExperiences, experiential e-commerce sites developed to present and build
brands in the most powerful way possible, by allowing young people to interact
with products in an event-oriented environment; ePartnerships, a proprietary,
Internet-driven business-to-business database that facilitates marketing
relationships with youth oriented partners; eFeedback,behavior-based Internet
experiences that help companies learn who their consumers are, thereby giving
management a direct link to the youth market segments for whom their products
are developed; eSchools, working with schools to develop Internet-related
classes, while enabling its clients to sponsor parts of the curriculum.
Convergence's website is located at www.cmg-us.com.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: The statements contained in this release which are not historical facts
are forward-looking statements that are subject to risks and uncertainties that
could cause actual results to differ materially from those set forth in or
implied by forward-looking statements. These risks and uncertainties include the
Company's entry into new commercial businesses, the risk of obtaining financing,
risks associated with start-up and early stage enterprises, risks associated
with providing services over the Internet, and other risks described in the
Company's Securities and Exchange Commission filings.
Distributed via COMTEX.
Copyright (C) 2000 Business Wire. All rights reserved.
CONTACT: THCG, Inc., New York
Shai Novik
Chief Financial Officer
212-223-0440
snovik@thcg.com
www.thcg.com
or
Investor Relations:
Lippert/Heilshorn Assocs., New York
Lisa D. Lettieri
Vice President
212-838-3777 or lisa@lhai.com
www.lhai.com
or
Media Relations:
Lippert/Heilshorn Assocs., New York
Pamela Rigler
Account Supervisor
212-838-3777 or pamela@lhai.com
www.lhai.com
KEYWORD: NEW YORK
INDUSTRY KEYWORD: INTERNET
BANKING
E-COMMERCE
ADVERTISING/MARKETING
MERGERS/ACQ
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