Maybe they can use the stamps to respond to shareholder lawsuits.
Hitsgalore.com Prepares to Liquidate $20 Million In Security
4/17/0 17:29 (New York)
Interest Assets
Business Editors
RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--April 17,
2000--Hitsgalore.com Inc. (OTCBB:HITT), announced today that, due to
the Life Foundation Trust default in payments due April 15, 2000 for
$10 million for Company stock and $10 million for services rendered,
it is preparing to liquidate the asset pledged as security for the
transaction.
The Life Foundation Trust pledged a rare stamp collection that, as
of the last appraisal, had a catalog value of almost $50 million and a
wholesale value of $20 million. Hitsgalore.com intends to allow the
trust a 20-day grace period while it makes liquidation preparations.
Liquidation of the rare stamp collection will be scheduled out
over as much as a year or more. "You can't just drop one of the
world's rarest stamp collections on the market all at once," says
Dorian Reed, chairman of Hitsgalore.com. "The experts tell us that the
collection will only bring the desired returns when sold into the
market in stages."
The trust has indicated it will continue in earnest to provide
cash payment in lieu of liquidation, a welcome move that the Company
would prefer.
All other transactions with the trust have been suspended and will
be canceled permanently if no payment is received by the end of the
grace period. The Company will be working closely with its auditing
firm to insure proper recognition of Company revenues.
"Hitsgalore.com has been a profitable company and we intend to
stay that way. Whether we collect or liquidate on the trust deal, we
plan to continue as a profitable growing concern. We have a solid
business model that works and that can make money. We are working hard
on new profit centers such as our new HBX2000 and the worldwide sale
of our technology," claims Reed.
Hitsgalore.com has identified an expert appraiser and collector to
assist with liquidation scheduling. As soon as the Company's auditing
firm gives final approval of the appraising firm, that firm will be
retained permanently to begin liquidation after the grace period ends.
"We are also still in the process of raising growth capital for
the Company and hope to make an announcement as soon as funding is
secured. We understand there are many questions on many issues and we
look forward to providing answers in future releases. We appreciate
the continued support of both the new and longtime stockholders and
employees in these turbulent times. The management here truly feels
the best is yet to come," adds Reed.
About Hitsgalore.com
Hitsgalore.com (www.hitsgalore.com) has a unique business model of
giving away free banners, lifetime banner placement, and other Portal
Services. The Company believes its business model compares favorably
with other Internet portals and search engine companies. The Company
generates revenue from its Keyword Bid & Rank program, sponsorships of
Portal Services, and Local City Editions. Hitsgalore.com strives to
provide porn-free searching and does not accept or encourage any porn
or adult-content listings on its site. The Company is also involved in
the rapidly growing business-to-business e-commerce sector through its
unique Hitsgalore Business Exchange 2000 (HBX2000) (www.hbx2000.com)
portal service. Hitsgalore is the innovator and developer of the first
B2B Internet Business Exchange that offers a trade organization to
provide pre-qualified "one-on-one sales introductions" for its listed
companies; the Company is the market leader in this newly unearthed
market niche.
The Company believes its HBX2000 business model compares favorably
with others in the B2B Internet e-commerce markets such as Ariba Inc.
(Nasdaq:ARBA), Commerce One Inc. (Nasdaq:CMRC), Oracle (Nasdaq:ORCL)
and SAP AG (NYSE:SAP).
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This news release contains forward-looking
information within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended, including statements that include the words
"believes," "expects," "anticipates" or similar expressions. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of Hitsgalore.com Inc. (the Company) to
differ materially from those expressed or implied by such
forward-looking statements. (Such factors include, among others, the
risk factors contained in the company's Annual Reports and other
filings with the Securities and Exchange Commission.) In addition,
description of anyone's past success, either financial or strategic,
is no guarantee of future success. The Company will remain dependent
upon future financing for its growth and development, and for it to
successfully implement its business plan. No statement contained
herein should be construed as indicating that such financing is or
will be available, and if available, will be on terms favorable to the
Company. This news release speaks as of the date first set forth above
and the Company assumes no responsibility to update the information
included herein for events occurring after the date hereof. Merger
Communications (Merger) is a media relations firm employed by the
Company. Merger and the Company believe that all information in this
release has been obtained from sources considered reliable, but cannot
guarantee that the statements presented herein are accurate or
complete. According to the long-term agreement between Merger and the
Company, Merger's compensation for its financial media relations
services, which includes the preparation and distribution of press
releases, consists of 10,000 shares of the Company's restricted stock
for the first month. The Company will then pay $10,000 cash and 5,000
shares of the Company's restricted stock per month for the remaining
11-month period ending 3/15/01. Merger typically has a long position
in the securities of the companies in which it publishes information,
and Merger may be buying or selling securities in the course of its
regular business. For more information on Merger's services, visit
www.mergerusa.com.
--30--EB/ho*
CONTACT: Merger Communications, Houston
David Drake, 713/572-2560 ext. 100 (Investor inquiries)
ddrake@mergerusa.com
or
Sara Laue, 713/572-2560 ext. 111 (Media inquiries)
slaue@mergerusa.com
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