scmi
Quotes
Charts
Message Boards
Financials
Earning Estimates
Company Profile
Historical Prices
SEC Filings
Industry Groups
Online Trading
Silicon Investor
IPO Monitor
Stock Picks
Daily Newsletter
Company Research
Your Portfolio
Stockwatch
Market Monitor
MC1000Stock Ideas
Movers & Actives
Bond Market
Reuters News
Stock Splits
Up/Downgrades
Earnings Calendar
Reported Earnings
Economic Calendar
Glossary
Stock Ticker
Software Download
Financial Careers
MortgageFinder
To print this story
Headlines Next Story
SCMI Provides Additional Information Concerning Merger with Hitsgalore.com and Previous Announced Spin Out of Intelicom International Holding, Inc.
Business Wire - February 25, 1999 09:19
CLEARWATER, Fla.--(BUSINESS WIRE)--Feb. 25, 1999--Systems Communications, Inc. (OTC BB:SCMI) announced today the proposed merger with Hitsgalore.com is moving toward completion. The agreement between Hitsgalore.com and SCMI stipulates all of the present officers and directors of SCMI will resign at closing, expected sometime in mid March. Edwin B. Salmon, Jr., Chairman of SCMI, stated the management team at SCMI has committed to work closely with Hitsgalore.com to ensure a smooth transition.
Steve Bradford, CEO of Hitsgalore.com said: "The Hitsgalore.com management team is strong with many years of Internet experience, and key personnel having complementary backgrounds in business management, sales, marketing, programming, and a wide array of Internet technologies." Hitsgalore.com (http://www.hitsgalore.com), located in Rancho Cucamonga, CA, operates an Internet Search Engine with a unique business model providing both visitors and users of its "Business Search Community" with "pin-point" search technology that helps users quickly get the search results they desire.
Hitsgalore.com's attractive offer of "Free Lifetime Banner Placement" with unlimited exposures and free click-throughs also drives major traffic to the Hitsgalore.com site. This distinguishes Hitsgalore.com from major search engines such as Yahoo, Excite, Lycos, HotBot, Alta Vista and others, as well as from those sites which charge a fee based on exposures or click-throughs. Hitsgalore.com also provides visitors with free animated and static banners and other free marketing tools for its business search community. Hitsgalore.com, having completed beta testing of its site and it debuted in late November 1998, has conclusively shown that its business model generates revenues. Initially, revenues were earned from the sale of "sponsorship" sales to businesses that pay $99 each to become empowered to give away 200 free, lifetime banner placements to other users of the site. This allows such sponsors to generate an opt-in database for their own use. Sponsors may also earn a referral fee for anyone in their sponsored databases that subsequently also wish to become a sponsor.
Hitsgalore.com ended 1998 operations with a profit (unaudited). Since the launch of Hitsgalore.com's "Keyword Bid & Rank" program that allows users to control where and how they rank on the Hitsgalore.com search engine, sales have been brisk. In January 1999 alone, Hitsgalore.com generated revenues in excess of $70,000. CEO Bradford states: "Our sales for this month should be even higher as traffic to our site has increased dramatically since launching our website just 90 days ago, and we expect this trend to continue". The firm, in an effort to confirm what it estimates to be over 1 million hits a day, is seeking an independent firm to validate its traffic flow.
The Hitsgalore.com "Bid & Rank" model appears at first blush to be similar to GoTo.com (http://www.goto.com), which also has a bid model to allow users to openly compete for ranking. A closer look at both models, however, will reveal many differences in services offered to the business seeking hits and revenue generation. Bid models offer controls to the users that the larger search engines do not.
Mr. Salmon stated: "This really is a double win for current SCMI stockholders. As a group, they will have approximately 20 percent of the issued and outstanding stock of SCMI after the reverse merger, when it will be renamed 'Hitsgalore.com, Inc.' SCMI's current stockholders will also end up with 100 percent of SCMI's current assets, business and operations, which will be transferred, along with related liabilities, to a new, wholly owned subsidiary corporation, 'International Healthcare Solutions, Inc' before all of that company's issued and outstanding shares are distributed as a dividend to SCMI's current stockholders." The distribution of the dividend will be registered. A record date for the dividend will be established closer to the completion of the registration process. Therefore, if you own 6,000 shares of SCMI today, the day of the closing, you will own 6,000 shares in International Healthcare Solutions, Inc. and 1,000 shares in Hitsgalore.com. The record date for the Intelicom dividend was October 30, 1998. If you were a share holder of SCMI, restricted or unrestricted, on that date you will receive the Intelicom dividend.
Salmon continued, "The Press Release announcing the spin out and dividend of shares to SCMI shareholders of Intelicom International Holding, Inc. on October 13, 1998 has been delayed due to S.E.C. filing requirements. We expect these requirements to be fulfilled and accepted in the near future and for the stock dividend to be paid to the shareholders within 90 days."
To expedite Hitsgalore.com being publicly traded now, versus a lengthy and costly I.P.O., SCMI and Hitsgalore.com are both anxious to complete the merger and move quickly to finish all necessary steps, including required S.E.C. Filings.
Financial statements in this press release, other than historical facts, are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. Systems Communications, Inc. intends that such statements about its future expectations, including future revenues and earnings, and all other forward-looking statements are subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results.
CONTACT: Systems Communications, Inc., Clearwater
Edwin B. Salmon, Jr., Chairman of the Board
727-530-4800
Headlines Next Story
--------------------------------------------------------------------------------
%FL-SYSTEMS-COMM SCMI %FLORIDA %CALIFORNIA %COMED %COMPUTERS %ELECTRONICS %INTERACTIVE %MULTIMEDIA %INTERNET %MERGERS %ACQ V%BW P%BW
|
