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Strategies & Market Trends : Joe Copia's daytrades/investments and thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Joe Copia who wrote (24319)	3/21/2002 8:14:20 AM
From: Joe Copia	Read Replies (2) \| Respond to of 25711

Note the bold below. It seems they describe a reverse split as if it is a good thing: Velocity Express Shareholders Approve Proposals Increasing Equity by $22 Million Business Editors MINNEAPOLIS--(BUSINESS WIRE)--March 21, 2002--Velocity Express Corporation, (Nasdaq:VEXP), the largest same-day delivery Company in North America, today announced that its shareholders overwhelmingly approved a series of proposals designed to both strengthen the Company's balance sheet and attract institutional investors. According to Jeff Parell, Velocity's Chief Executive Officer, "The shareholders approved the previously announced actions taken to improve our balance sheet and increase our stockholders equity by $22 million." This equity improvement was initiated by the Company's preferred shareholders, who waived their cash redemption rights, with no compensation in return. According to Mr. Parell, "The actions of our shareholders demonstrate the unwavering commitment of our major investors to our business model." The shareholders also approved the Company's compensation arrangement with TH Lee Putnam Ventures (THLPV), the Company's largest shareholder. According to Mr. Parell, "The Company's cash flow was significantly impacted in the weeks immediately following September 11th. THLPV, the Company's strongest supporter, provided the financial assistance that was necessary in the aftermath." Under the arrangement, THLPV will receive additional equity in the Company for their assistance in increasing the Company's liquidity. "Our ability to secure this support in a challenging economic climate, is testimony to the Company's continuing progress," continued Mr. Parell. The shareholders also gave the Board of Directors the discretion to affect a reverse stock split which would expand the Company's investor base by enabling the Velocity stock to be traded by larger institutional investors. Velocity Express is the largest same-day delivery and logistics solutions company in North America. A fully insured Company, it provides same-day scheduled and distribution services with quality, on-demand capabilities as well. The Company's customized network of delivery and logistics services are available nationwide. Its services are supported by a customer-focused technology infrastructure, providing customers with the reliability and information they need to manage their transportation systems. The Company makes over 200,000 deliveries each day, with a 98% on-time performance record, serving demanding, blue chip institutions such as the Federal Reserve Bank, Staples, Cardinal Health, and AmerisourceBergen. It is led by a seasoned management team of transportation and logistics professionals and backed by active investors and strategic partners such as TH Lee Putnam Ventures, MCG Global and East River Ventures. This press release includes certain "forward-looking statements" for purposes of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results to differ materially. Such statements are based upon, among other things, assumptions made by, and information currently available to, management, including management's own knowledge and assessment of Velocity Express' industry and competition. --30--jc/ms* CONTACT: Velocity Express, Minneapolis V. Valentino, 612/492-2407 vvalentino@velocityexp.com