Source: Business Wire
By: Company Press Release
(RANCHO CUCAMONGA, CA) — Hitsgalore.com Inc. (OTCBB:HITT – news) announced today that, due to the many negative, false and misleading statements, and other information in the press and on Internet message boards, being touted as fact to the point of inciting a day of what the Company feels was panic selling, the Company feels compelled to respond on behalf of its management, shareholders and employees.
The Company wishes to share with shareholders and potential investors why management believes the Company can overcome current conditions and continue to grow and prosper. “The Company has approximately 7 million shares in the public float. Despite what looked like a brisk sell off, yesterday’s gross volume of 706,000 shares traded meant that most shareholders were in fact holding and not selling,” says Dorian Reed, chairman of Hitsgalore.com.
“The Company has announced that the Life Foundation Trust defaulted on its obligation due April 15, 2000. The Trust had also pledged an asset, which previous appraisals indicate to be of sufficient value for the Company to reclaim 100% of the Trust’s obligation to the Company. Yes, liquidation will take time, and we wish the Trust had paid in cash as agreed, but this is a secured transaction. In the long run we should not be hurt by the default. We can and must move on,” continues Reed.
The Company cites its low capital burn rate as a key factor for a positive outlook for the future. “Excluding capital growth expenditures for acquisition, new equipment, computers, legal fees and the new HBX2000 trading center, the Company has only about $800,000 in convertible debt. Keeping in mind that the Trust has paid almost nothing, it is significant that we have managed to continue operating this past year and grow the business at the same time,” Reed says.
Reed continues, “We understand shareholder concerns and questions about continuing without immediately receiving funds from the Trust. We plan to continue as we have in the past without funds from the Trust. We have had success in obtaining funds in small amounts and we are now talking to additional sources to provide capital to continue long term. As previously announced, our HBX2000 had a great reception with almost $700,000 in annualized sales during its beta release period.”
“The HBX2000 is a solid way to grow significant revenues in 2000, more than enough to replace revenues from the Trust transaction. While survival in this marketplace is guaranteed to no one, we still feel we have a winning business model. We are looking forward to working with our auditors and other experts for recognition of the Trust revenues, indicating 5 consecutive quarters of profitability. Not many Internet companies can say that. There’s no question we may be low on cash right now, but we’re high on our future and, for a lot of good reasons, we say, don’t count us out,” says 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 – news), Commerce One, Inc. (Nasdaq:CMRC – news), Oracle (Nasdaq:ORCL – news) and SAP AG (NYSE:SAP – news).
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.
