Yes Jim, according to Mr. Norman Alvis the shares are to be distributed over a 24 month period for advertising with different media. In addition in a press release dated 7/5/00 Sivla, Inc out of Sacramento, California media venture capital firm received 11.25 million shares of restricted common stock. THATlook.com received 30 Million. Seems to me just the cost of advertising and doing business.
thatlook.com Receives $30 Million Investment
/FROM PR NEWSWIRE LOS ANGELES 213-626-5500/
TO BUSINESS EDITOR:
thatlook.com Receives $30 Million Investment
STROUDSBURG, Pa., July 5 /PRNewswire/ -- thatlook.com
(OTC Bulletin Board: THAT) today announced that it recently completed
negotiations to receive an investment of $30 million from Sivla, Inc., a
Sacramento, California media venture capital firm.
Under terms of the agreement, thatlook.com will be issuing 11.25 million
shares of restricted common stock in return for advertising and media credits
totaling $30 million, for an effective price of $2.67 per restricted share.
These credits span a vast array of media from which the Company can choose,
including network and cable television spots, radio time, space in over
200 magazines, space on highly trafficked Internet Web sites, billboards and
other promotional venues. These credits are available to be drawn upon
immediately.
Norman Alvis, President and CEO of Sivla, in commenting on their
investment in thatlook.com, stated, "We are extremely pleased to have been
able to complete this transaction with thatlook.com. We aggressively pursued
this relationship because we believe thatlook.com is creating a large,
potentially very profitable new market. Our investment will give them the
wherewithal both to dominate their current market, and to expand their
creative business model to other markets of comparable size."
Gerard A. Powell, President and CEO of thatlook.com made the following
comments with regard to this transaction: "This investment is an enormous
boost for our company on several fronts.
"First, as we self-funded our growth, previous resource limitations did
not permit us to advertise and generate patient traffic for our participating
physicians at the substantially higher rates we believe to be appropriate and
possible. These new resources eliminate this barrier to more rapid expansion.
Access to advertising resources on the scale of our agreement with Sivla is
something we have only dreamed of in the past.
"Second, while we recently added the 100th doctor to our network, access
to these resources will allow us to expand significantly the rate at which we
add doctors. We can now aggressively pursue our goal of having 1,500 to
2,000 cosmetic surgeons in our program and dominating this market.
"Third, I anticipate that these resources will be sufficient to allow us
to expand our current, and proven, business model beyond the elective cosmetic
care arena to providing comparable services in the orthodontics, hair
replacement and vision correction areas.
"Fourth, while we are still working out the details with our outside
auditors, I anticipate that this investment will be sufficient to allow us to
make application to have our stock listed on NASDAQ. This would be a material
benefit for our shareholders, and likely permit them increased liquidity of
and regulatory scrutiny for the trading in their shares."
About thatlook.com:
thatlook.com is a direct response, marketing services company serving a
network of physicians that specialize in performing elective, cosmetic
procedures.
Using a combined, multi-media approach, including the Internet,
television, radio, print and direct mail, thatlook.com generates financially
qualified, and purchase-minded patient traffic to its network of member
physicians.
thatlook.com's (OTC Bulletin Board: THAT) Internet web site is:
thatlook.com
Investor relations information is at
4-you.com
This News Release may contain "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, and Section 21E of the
Securities Exchange Act of 1934. Although the Company believes that the
expectations reflected in such forward-looking statements are reasonable, it
can give no assurance that such expectations will prove correct.
SOURCE thatlook.com
/CONTACT: Mr. Alan Zazoff of Zazoff Associates, L.L.C.,
973-515-8515,Zazoff-Alan@msn.com/
/Web site: 4-you.com
/Web site: thatlook.com
Jul-05-2000 14:02 GMT
Symbols:
US;THAT
Source PRN PR NewsWire
Categories:
NWR/PA NWR/CA NWI/HEA NWI/FIN
Regards,
Elwyn |
